Bank holds at 0.5%, again

Date: 4th June 2009

The Bank of England has held its base rate at 0.5 per cent for the third month in a row today (June 4th).

Following aggressive cutting in the early months of the year, the Old Lady of Threadneedle Street has opted to hold steady at the historic low.

However, the British Chambers of Commerce (BCC) - an association of sole traders, partnerships and other businesses - believes it is time for the bank to up its £125 billion quantitative easing programme.

Chief economist at the BCC David Kern said: "Most expected interest rates to be kept on hold, so the real debate is over the success, size and scope of quantitative easing.

"Tackling the recession must remain the priority, especially with unemployment rising and firms continuing to slash investment."

He added that the bank must "up the tempo" of quantitative easing before addressing the long-term problem of inflation.

The base rate was last reduced in March of this year, when the Bank of England opted to cut from one per cent to 0.5 per cent.