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Bank holds base rate at 0.5% and QE programme at £275bn

The Bank of England’s Monetary Policy Committee has decided to hold base rate at 0.5 per cent for the 32nd consecutive month and to hold quantitative easing at £275bn.

The last rate change was on March 5, 2009, when it was reduced from 1 per cent to 0.5 per cent. On the same day, the Bank of England initiated a £75bn QE programme.

The QE programme was increased to £200bn in November 2009 and then increased by £75bn to £275bn last month.

Minutes from the October meeting of the MPC showed all members voted for an additional £75bn of quantitative easing.

Legal & General Mortgage Club managing director Ben Thompson says: “It must be hard to see a completely clear view of the UK right now through the very dense fog that is Euroland. This lack of clarity will have made it hard for the Bank to take any new steps or measures today, and also it needs to assess how impactful last month’s latest round of QE was before pressing the accelerator again. This is certainly a difficult period and the Bank will no doubt be watching events very closely indeed.”

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