Interest rates have remained unchanged at their record low for the 27th month in a row. The Bank of England’s Monetary Policy Committee (MPC) today voted to keep rates at 0.5%, the point they have been at since March 2009.

Recent gloomy economic data had made a rate rise unlikely, despite the fact that inflation rose to 4.5% in April, up 0.5% on the previous month.

This week the International Monetary Fund (IMF) published its economic outlook for the UK, backing the tough changes that have been made to UK economic policy. They felt that rising inflation and weak economic growth had been unexpected but they felt that this would only be a temporary issue and still predicted some growth of 1.5% in 2011, although this has been revised down from previous estimates.

Last month three members of the rate setting committee voted for a rise, but there has been a change on the 9 man committee this month. Andrew Sentance who has previously voted for rate rises stepped down last month to be replaced by Ben Broadbent. We will have to wait until 22nd June  when the minutes of today’s meeting are published to find out whether the momentum across the committee has changed.  The next meeting of the MPC is on 7th July 2011.

The group also chose to maintain their previous stance and not announce any additional quantitive easing measures.