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Bank of England maintains interest rates at 0.5%

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The Bank of England has maintained interest rates at 0.5 per cent amid uncertainty around the UK’s economy in the lead up to June’s Brexit referendum.

It is the third consecutive time the Monetary Policy Committee has voted unanimously to keep rates at their current low levels. Ian McCafferty, once the sole dissenter, voted in February to keep rates at 0.5 per cent rather than raising them to 0.75 per cent as he had previously been advocating for.

Interest rates have remained at their current low levels since March 2009 and many do not expect to see a rate rise until 2017.

Earlier this week, the Office of National Statistics revealed an unexpected rise in March inflation to 0.5 per cent from 0.3 per cent in February, but still a long way from their 2 per cent target. The rise was attributed to consumer spending during the Easter holidays, which fell earlier than normal this year.

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