UK interest rates kept at 0.5%

£75bn more quantitative easing announced by Sir Mervyn King to boost demand in economy. The Bank’s governor said the UK was suffering from a 1930s-style shortage of money and needed a second dose of quantitative easing to boost demand and prevent inflation falling too low.

THE FTSE 100 continued to make progress yesterday, as fresh economic stimulus measures from the Bank of England sent the benchmark index higher.

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