Bank of England holds interest rate at record low

The Bank of England had decided to keep the key interest rate at a record low of 0.5 percentThe Bank of England froze interest rates at a record low 0.50 percent on Monday in the first monetary policy decision since the Conservatives triumphed in the general election. The meeting was held Thursday and Friday but the outcome by the independent BoE was delayed due to last week’s vote — which was unexpectedly won by Prime Minister David Cameron’s Conservative party. Borrowing costs are now likely to stay on hold for the rest of the year, economists said, due to slowing economic growth and the prospect of more harsh austerity measures from Cameron in the wake of the May 7 election. “The BoEâ s Monetary Policy Committee (MPC)… voted to maintain Bank Rate at 0.50 percent,” it said in a statement.

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