No change on interest rates

BANK of England policymakers erred on the side of caution again today and opted to make no change on interest rates, holding the level at 0.5%.

The asset purchase programme was also untouched at £375bn.

It was the final rates decision for governor Mervyn King who will be succeeded by Mark Carney next month.

The better-than-expected 0.3% growth in the economy during the first three months of the year – ensuring the UK avoided an unprecedented triple-dip recession – is thought to have persuaded the Monetary Policy Committee to avoid any change of course.

Inflation also fell last month from 2.8% to 2.4%, closer to the Bank’s 2% target.