When will UK interest rates rise?

With Britain's economic recovery faltering, the Bank of England's decision to keep interest rates at 0.5% comes as no surprise. But how long can rates remain at their record low level? James McKeigue looks at when interest rates might turn back up again.

So, the decision is made. And it's what everyone expected. The Bank of England's Monetary Policy Committee (MPC) has left its key interest rate unchanged at its current record low of 0.5%. Recent economic news made it pretty likely that BoE governor Mervyn King and the 'low-rate majority' in the MPC would stick to their guns.

King has made it clear he sees the weak economic recovery as a more serious concern than rising inflation, which he has consistently described as being a short-term problem.

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James McKeigue

James graduated from Keele University with a BA (Hons) in English literature and history, and has a certificate in journalism from the NCTJ. James has worked as a freelance journalist in various Latin American countries.He also had a spell at ITV, as welll as wring for Television Business International and covering the European equity markets for the Forbes.com London bureau. James has travelled extensively in emerging markets, reporting for international energy magazines such as Oil and Gas Investor, and institutional publications such as the Commonwealth Business Environment Report. He is currently the managing editor of LatAm INVESTOR, the UK's only Latin American finance magazine.