BoE holds interest rates but ECB cuts to 1%

The Bank of England's Monetary Policy Committee has once again kept interest rates on hold at 0.5% and left QE unchanged at £275bn, but the European Central Bank has cut rates back to their historic low of 1%.

UK rates have remained at 0.5% since the last cut in March 2009.

The MPC, which was widely expected to keep rates unchanged for the 33rd month in a row, last increased the size of its quantitative easing programme to £275bn back in October.

The Bank said it expects the current bout of QE to take another two months to complete.

Meanwhile, the quarter-point cut in Europe comes amid ongoing fears of the eurozone and ahead of a key summit of EU leaders in Brussels.

The ECB is also thought to be preparing a bailout for the Italian government.