Bank of England holds rates and leaves QE unchanged The decision contrasts with the recommendation from the International Monetary Fund (IMF), which last month urged the Bank to restart QE to help restore Britain's faltering recovery. Surveys in the past week of the manufacturing and construction industries added to fears that the economy is continuing to slow, although today's report on the powerhouse services sector offered some consolation by beating expectations. Rates have now been on hold at a record low since March 2009, the longest unchanged period since decade spanning the Second World War and the subsequent austerity that ended in 1950. The economy has collapsed back into recession, falling 0.3pc in both the first quarter of the year and the final quarter of 2011. The consensus forecast now is that the UK will grow just 0.4pc this year, compared with the Office for Budget Responsibility's prediction of 0.8pc. Last month, the IMF said the Bank should consider cutting rates further and adding more QE to prevent "hysteresis" - or permanent damage to the economy. However, minutes from the Bank's recent meetings have concentrated on the persistent threat of inflation, which has fallen more slowly than expected and is still one percentage point above the 2pc target level. Barclays Capital recently warned that were the Bank to continue using QE to buy gilts rather than other assets, its actions would have little effect on growth and could cause prices to rise. It would be "more effective at boosting inflation expectations than at boosting demand," BarCap said. Pensioner groups have also expressed exasperation at QE, which they claim has reduced the value of their retirement funds.