Interest Rates Hold Steady

As predicted the MPC have not raised interest rates, they remain (as they have done for the past 27 months) at 0.5%.

The decision to freeze rates is hardly surprising given the state of the economy and level of indebtedness.

However, do not expect the ECB to be so "alive" to the economic problems of the real world. It is highly likely that the ECB will continue to tilt at windmills, and push for higher rates, in its fanatical and mistimed battle against inflation.