The decision was widely expected by economists, who consider that any rise in the cost of borrowing could damage the UK's fragile economic recovery. The Bank have also ceased pumping more money in to the economy (quantitative easing) after already trying to boost the UK economy with £200 billion so far. This could all change though if the Government decide that the UK economy needs boosting further.
Figures released last week showed that the UK economy grew by 0.3% in the final three months of 2009, compared with an initial estimate of 0.1% growth. But although the 0.3% growth in the final quarter of 2009 was stronger than previously thought, the Bank believes that continued economic growth is not yet guaranteed.
