Bank of England retains interest rates at 0.1% as second lockdown commences

(Mirror UK) The Bank of England has left interest rates unchanged at 0.1% amid warnings it could tumble into minus territory before the end of the year.

The Bank said rates will stay the same as it revealed plans to boost the economy by a further £150billion as England enters a second lockdown.

The Bank’s decision comes as experts have warned the latest restrictions will send gross domestic product (GDP) tumbling this month.

The Bank forecast in its last Monetary Policy Report in August that the economy would shrink by 9.5% this year, following Government action aimed at protecting the economy.

AJ Bell financial analyst Laith Khalaf said: “The summer boom has faded since the Bank of England last met and the resurgent second wave of the pandemic has dented the economic outlook.”

Since the start of the pandemic, interest rates have been slashed to an all time low of just 0.1%, but plans are being readied to drop them lower still.