Bank of England keeps interest rates at 0.5 per cent

The Bank of England has kept the base rate of interest at 0.5 per cent for the 20th consecutive month and said it will continue to prop-up the economy with the £200 billion quantitative easing (QE) programme.

Better-than-predicted economic growth and stronger manufacturing output has helped the bank make its decisions, leaving a decent playing field for those wanting secured loans.

Monetary policy was last changed in November 2009 when the QE fund limit was raised from £175 billion to £200 billion. Interest rates were last changed in March last year.

The Monetary Policy Committee was expected to leave policy unchanged because of higher-than-expected third-quarter GDP growth of 0.8 per cent.

Strong official manufacturing figures earlier this week, which have bolstered the good mood, showing output rose 0.6 per cent month on month in October, the best reading since March and double expectations in the market.