Bank of UK interest rates remain at record low of 0.5%

LONDON: UK interest rates have been held at 0.5% again by the Bank of England’s Monetary Policy Committee.

Rates have now remained on hold for more than six years and the Bank is not expected to raise them until next year.

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Analysts say the Bank is under no pressure to raise rates yet with inflation near record lows.

Inflation, as measured by Consumer Prices Index, was all but flat at 0.1% in May. That was up from -0.1% in April but well below the Bank’s 2% target.

However, in the Bank of England’s inflation report in May, governor Mark Carney warned that inflation was expected to pick up notably towards the end of the year.

The half-dozen years of ultra-low interest rates have cut returns on savings, but mortgage borrowers have benefited from lower repayments.