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Interest rates unlikely to rise in the near future
Bank of England warns of continued economic weakness and dangers of the eurozone crisis
Interest rates look set to remain at the record low of 0.5 per cent for some time after the Bank of England revealed concerns over the strength of the economic recovery and warned of the "substantial" risks posed by an escalation of the eurozone crisis.
The minutes of the July meeting of the monetary policy committee show that it voted seven to two in favour of holding the rate at 0.5 per cent. Between February and May there had been three members of the committee in favour of increasing rates.
The committee also noted that the economic outlook remained weak, and it said "recent developments had reduced the likelihood that a tightening in policy would be warranted in the near term".
In a separate report the Council of Mortgage Lenders said that home lending rose in June to £12.9bn, but that the figure was still lower than a year ago.
Read a full report at the BBC. ·
