The MPC has also chosen not to enlarge the quantitative easing (QE) asset purchase scheme and to leave it at its present size of £325bn.
The interest rate, the lowest in the Bank of England’s 300 year history, has been unchanged since March 2009.
Earlier this month the European Central Bank (ECB) also chose to leave the single currency’s interest rate unchanged at 1%.
The eurozone sovereign debt crisis, which had been out of the limelight for the last few months, has returned once again to the fore due to the inconclusive election in Greece.
With no party or coalition of like-minded parties seeming able to form a government there is a strong possibility of a second election in the near future, with many parties promising to renegotiate the terms of the EU bail-out which is supporting the nation’s economy.
Source:
bankingtimes.co.uk
