The Bank of England monetary policy committee held bank rate at 0.5 per cent for the 29th month in a row last week and kept quantitative easing at £200bn.
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 most recent change to the size of the programme, on November 5, 2009, was an increase of £25bn, bringing the total to £200bn.
Last week, the European Central Bank held its main interest rate at 1.5 per cent. The ECB raised rates in April and July by 25 basis points on both occasions.
Norwich & Peterborough mortgage manager Richard Barker says: “The decision to leave the base rate unchanged at 0.5 per cent was widely anticipated across the industry. Many economists believe rates will remain on hold for the rest of the year, so for the moment, those on a variable rate, or tracker have more time to consider their options.”
The July minutes show the committee voted 7-2 in favour of keeping rates at 0.5 per cent.