Bank of England HOLDS interest rates despite UK economy stalling after Labour's Budget raid - with fears over resurgent inflation The Bank of England kept interest rates on hold today despite mounting alarm at the stalling economy.
Interest rates, which influence how much banks charge for loans and mortgages, are used as a tool by the central bank to keep inflation at its 2 per cent target level.
Most economists had thought the latest data, and the prospect of price pressures increasing in the coming months, would persuade the Bank's policymakers to hold interest rates.
However, after drifting downwards from historic peaks the headline CPI hit to 2.3 per cent in October and 2.6 per cent in November.
We want to put more money in the pockets of working people, but that is only possible if inflation is stable and I fully back the Bank of England to achieve that.'.
