LABOUR’S economic recovery plans have been dealt a blow by the Bank of England holding rates at 4.75 per cent, experts said today.

The TUC and Institute for Public Policy Research (IPPR) had called for a third cut to rates this year arguing Britain’s low growth showed the need for greater investment into the economy.

The Bank however kept the base rate on hold a day after data showed inflation had crept up for the second consecutive month to 2.6 per cent in November.