The Bank of England has held UK interest rates at a record low of 0.5% for the 28th consecutive month, with recent data showing that the economic recovery remains weak. Data from the manufacturing, construction and services sectors earlier this week suggested the economy grew by only 0.3% in the second quarter, following on from a 0.5% rise in the first three months of the year, Last month, analysts suggested that interest rates could stay at the record low of 0.5% into next year, after the economic indicators sparked fears that the UK’s economy is struggling to grow. At the same time, the European Central Bank (ECB) raised interest rates for the second time this year as it looked to control rising eurozone inflation. The ECB moved the rates up to 1.5% from 1.25%.

Topics