Interest rate on hold at 5%

The Bank of England keeps interest rates on hold at 5%.

The bank's monetary policy committee voted to keep the cost of borrowing unchanged at 5%, following the quarter point rise in November and an earlier rise in August. Last month the bank increased interest rates to their highest level in five years in an attempt to bring down inflation to its target of 2%.

The holding of interest rates was widely predicted by many analysts, who felt a further rise would be to soon after the last one.