UK interest rates held at historic low

The Bank of England has kept interest rates at an historic low of 0.1% and stuck to its £895bn asset purchase target.

Members of the Bank's Monetary Policy Committee voted unanimously to keep rates on hold.

But forecasts for economic growth in the third quarter were revised down by about 1%.

Supply constraints were hitting recovery and there are signs "cost pressures may prove more persistent."

Developments over the past month have "strengthened" the case made in August that some tightening of monetary policy could be necessary to meet the central bank's 2% inflation target sustainably in the medium term, policymakers said.

The MPC added that "considerable uncertainties remain".

The Bank also forecast that UK inflation would be above 4% by the end of the year.