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Interest rates to remain unchanged


Interest rates are to set to be unchanged this week for the first time since October 2008.

As the bank interest rate remains the same, the quantitative easing (QE) initiative which was launched by the Bank of England to inject money into the economy will also remain the same.

Specialists have said that policymakers will be unwilling to decrease interest rates due to banks not wanting to lend  money.

Reports have also suggested that interest rates will be unchanged until the end of the year especially with the quantitative easing (QE) which was launched last month.

Howard Archer, chief UK economist at Global Insight commented: "We suspect that interest rates are set to stay at 0.5% well into 2010 as we believe that GDP will contract through this year before the economy stabilises in early 2010."

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