Bank of England holds rate at 0.5%

THE Bank of England yesterday held UK base rates at 0.5% and the scale of its quantitative easing programme at £375 billion, although economists highlighted again the eventual possibility of a cut in rates.

While the Bank's Monetary Policy Committee has signalled it will keep under review any case for cutting base rates further, it has indicated the situation will have to be looked at in light of the impact of the £80bn funding for lending scheme. It is expected to be several months before the impact of this joint Bank of England-UK Government scheme becomes plain.

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