Interest Rates Held At 5.00%

The Bank of England has kept interest rates on hold for the fifth month in a row despite the looming threat of recession.

For the fifth month running, the Bank's monetary policy committee voted to leave rates at 5%, disappointing already struggling homeowners who had hoped for cheaper mortgages. The City had widely expected no change, with the likelihood of a cut put at 45%.The European Central Bank also left interest rates unchanged today, at 4.25%

But with inflation currently running at 4.4%, more than double the MPC's 2% target, and expected to hit 5% in the coming months, rates are not likely to be cut until November at the earliest.