Bank holds base rate again

The Bank of England's Monetary Policy Committee has voted to hold the base rate at 0.5 per cent and maintain the current level of quantitative easing (QE).

While the current cost of borrowing – which has been pegged at its minimal level since March 2009 – may have been expected, the maintenance of the level of QE could suggest the body feels no more action is needed at the moment as Britain is about to exit recession.

However, even if that is the case many people who are struggling with debt will not be able to rest easy, as it may take some time to translate into growing wealth.

Instead, it may be best for those in financial difficulties to seek extra help as soon as they can.

Earlier this week the British Chambers of Commerce (BCC) warned that although the economy is likely to have grown in the third quarter, it is not yet in a position to offer sustained growth.

BCC chief economist David Kern said the economic performance of the UK remains "weak and inadequate".

By Joe White