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UK interest rates mark six years at record low of 0.5%
UK interest rates have been kept unchanged again by the Bank of England, meaning they have now been at their record low of 0.5% for six years. Rates were first cut to 0.5% in March 2009 as the Bank sought to lift economic growth amid the credit crunch. Recent growth in the economy has prompted speculation that rates will start to rise again in the near future. However, continuing low inflation, now at 0.3%, gives policymakers little reason to raise the cost of borrowing. Inflation is expected to remain low, and could even turn negative, thanks largely to a near-halving of the price of energy. Bank of England governor ... (full story)