Bank base rate

Bank base rate is kept at 0.5% for another month,

the Bank also kept the size of its bond-buying stimulus programme unchanged at £375bn.

The decision by the Bank’s Monetary Policy Committee (MPC) comes more than six years after the record low was introduced.

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

Ultra-low inflation, which turned negative in April at -0.1%, has put on hold expectations about the Bank raising rates in 2015.

Last month, the Bank indicated in its quarterly inflation report that it was likely to raise the cost of borrowing in the middle of next year.

Meanwhile, recent ONS figures confirmed that UK gross domestic product (GDP) growth slowed to 0.3% in the first quarter, which was its worst showing since the end of 2012.

The nine-strong MPC has voted unanimously to keep rates on hold in all its previous meetings so far this year.

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