The Bank of England has retained the country's interest rate at 0.5 percent as expected, keeping it at last month's record low. The move comes as the Bank considers the effects of the previous rate cut and current economic conditions, which they labelled "fragile" despite recovery mechanisms initiated by governments around the world. The Bank issued a statement outlining the reasons for its decision: "The world economy remains in deep recession. Output has continued to contract and international trade has fallen precipitously. The global banking and financial system remains fragile despite further significant intervention by the authorities." The European Central Bank decided to cut its rate by 25 basis points to a record low of one percent.