The Bank of England has decided to keep the interest rates at its record low level of 0.5% for the 18th month in a row. This decision of keeping the interest rates low was expected from Monetary Policy Committee (MPC) of Bank of England but the calls for rising interest rates are growing day by day to curb the inflation level.

As per the financial papers, the CPI inflation stood at 3.1% in the month of July which was well above the target rate of 2% of Bank of England.

Meanwhile, the MPC member Andrew Sentance had called for rise in interest rates for three consecutive months at the last MPC meeting. Despite of the calls the Bank of England kept the interest rates unchanged at its record low level of 0.5% since March of 2009.

The Bank of England has also cleared that it will continue with its 200 billion pounds QE programme but some of the members want that to be expanded.

The bank was forced to keep the interest rates at the lowest level as the UK economy grew by only 1.2% in the second quarter and the pace of growth fell down sharply.