BoE keeps interest rates at 0.5%

The Bank of England has maintained interest rates at 0.5% and kept its quantitative easing programme at £200bn.

The Monetary Policy Committee's (MPC) decision to hold the rate at its historical low, where it has been since March 2009, was widely predicted, despite continuing worries about inflation.

The rising cost of food, clothes and oil pushed the consumer price index up to 3.3% in November, well above the Bank's target rate of 2%.

Minutes from recent MPC meeting have shown Andrew Sentance to be the lone voice calling for an increase in interest rates to battle the rising inflation.

However, his fellow members have argued doing so could push the economy into a double-dip recession.

In a recent interview, MPC member Paul Fisher, the Bank of England's executive director of markets, highlighted the role IFAs will have to play in preparing the public for any eventual increase in interest rates.

He said: "Obviously the first time we raise base rates that will be a big signal to people. But you'd like to think independent financial advisers and others will be bringing this home to people when they are arranging their mortgages and other borrowings.

"We hope people are aware that interest rates at some point will go up again and that they will head back to a normalised position."