The monetary committee of the Bank of England decided to keep the interest rates at 0.5% which is a 315 year low notwithstanding the rising inflation which drew stern criticism from all quarters. The bank also decided to go on with its program of quantitative erasing, which is nothing but injecting money directly into the economy to speed up the recovery process. The current amount stands roughly at 200 billion pounds.The decision by the Bank came even though there were great pressures that demanded the rise of the interest rates to curb the growing inflation. The bank's decision instead coincided with the mixed news from the real economy. Weaker manufacturing output was reported by the Office for National statistics for the month of December.
