The Bank of England has informed that the interest rates in UK have touched to its record low of 0.5%. This has been recorded in the 16th month in a row by the bank.

The Monetary Policy Committee (MPC) has also declared that it is not going to release any money in to the economy further under the scheme of quantitative easing (QE) policy.

The decision was expected but the pressure has been increasing to raise the rates to tackle with the inflation.

A leading thinktank of UK has warned that the economic recovery of UK faced headwinds after the Budget of last month. The thinktank NIESR has estimated that the UK economy raised by 0.7% in the three months till the end of June but that was a slower growth compared to the 0.9% growth in the three months till the end of May.

The official GDP figures for the second quarter of this year will be unveiled on 23rd of July. In last month the MPC member, Andrew Sentence had proposed that the rates may rise to 0.75%. Moreover, he was the first MPC member to call for a raise in interest rates since August 2008.