BoE, ECB keep key interest rates unchanged

Both the Bank of England (BoE) and the European Central Bank (ECB) have maintained their benchmark lending rates steady at 0.5 per cent and 0.75 respectively on yesterday's monetary policy reviews.

BoE's monetary policy committee (MPC) kept the key interest rates at a record low of 0.5 per cent and retained the quantitative easing (QE) at £375 billion.

It is believed that the members of the high-power committee have been divided over further stimulus measures by injecting more money into the financial system to drive economic growth.

According to preliminary figures released by the UK's office of national statistics (ONS) a fortnight ago, the country's gross domestic product (GDP) registered a significant 1-per cent growth in the third quarter, bringing an end to the longest double-dip recession after the Second World War.

The central bank's funding for lending initiative to provide cheaper loans to consumers have been welcomed by several groups including few of UK's largest banks.

Inflation figures also eased significantly to 2.2 per cent in September, nearing the government's 2-per cent target.