Interest rates held for fourth straight month

The Bank of England has held interest rates at 0.5 per cent, as expected, for a fourth successive month.

The Bank's monetary policy committee (MPC) is expected to keep the current rate, in place since March until at least 2010.

Positive economic data filtering through in recent weeks could see the time that interest rates are raised against brought forward, however.

Commenting, Trevor Williams, chief economist at Lloyds TSB Corporate Markets, said: "It should come as no surprise that the Bank of England has decided to hold rates for another month and concentrate on its policy of quantative easing. After all, the UK is still in recession.

"There are of course signs that the worst is over. The falling demand that triggered hefty cut backs in stocks and output across so many businesses seems to be easing. And some stability is returning to the financial markets."