Base rate to hold

THE Bank of England is likely to hold the base rate at 0.5 per cent on Thursday.

But David Kern, chief economist at the British Chambers of Commerce is calling on the Bank to boost quantitative easing. He said: "The recession is moderating, but we must not be lulled into a false sense of security. The downturn remains severe, with GDP falling sharply in Q1 and unemployment set to continue rising. The possibility that the downturn will worsen should not be shrugged off lightly."