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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2010/12/bank-keeps-interest-rate-unchanged.jpg"><img class="alignnone size-full" title="The Bank of England left its emergency support for the economy unchanged" src="http://londonglossy.com/wp-content/uploads/2010/12/min-bank-keeps-interest-rate-unchanged.jpg" alt="The Bank of England left its emergency support for the economy unchanged"/></a></p>
<p>The Bank of England has ended the year as it began as it left its emergency support for the economy unchanged.</p>
<p>Policymakers held interest rates at 0.5% for the 20th month in a row and maintained money-boosting efforts at £200 billion under the Bank&#8217;s quantitative easing (QE) programme.</p>
<p>Stronger-than-expected economic growth and an improved performance in the manufacturing sector in recent months has steadied the Bank&#8217;s hands, despite expectations of a slowdown in the pace of recovery in the months ahead.</p>
<p>The Bank of England last altered its monetary policy in November 2009, when it increased the level of QE from £175 billion to £200 billion. Interest rates were lowered to their historic low of 0.5% in March 2009.</p>
<p>The Monetary Policy Committee (MPC) was widely expected to leave policy unchanged following higher-than-expected third-quarter gross domestic product (GDP) growth of 0.8%.</p>
<p>The good mood was bolstered by strong official manufacturing figures earlier this week, showing output rose 0.6% month on month in October &#8211; the best reading since March and double expectations in the market.</p>
<p>But uncertainty returned on Thursday as the UK&#8217;s net trade &#8211; the difference between exports and imports &#8211; widened unexpectedly, knocking hopes for a private sector-led recovery.</p>
<p>And inflation has also been stubbornly high &#8211; rising to 3.2% last month &#8211; which has prompted repeated calls from one MPC member for a quarter-point rise in interest rates.</p>
<p>The escalating debt crisis in the eurozone is another factor likely to have been discussed at Thursday&#8217;s MPC meeting, as struggling countries on the Continent could affect the UK&#8217;s export trade and subsequent growth.</p>
<p>Economists expect another three-way split among the nine-strong MPC this month, with Andrew Sentance likely to vote for a rise in interest rates and Adam Posen expected to favour a second injection of QE.</p>
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