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Base rate held and no more QE

The Bank of England’s monetary policy committee has decided to hold base rate at a record-low 0.5 per cent for the 39th consecutive month and to keep its programme of quantitative easing at £325bn.

Base rate was cut to 0.5 per cent in March 2009, on the same day the BoE initiated a programme of QE worth £75bn.

In February, the BoE voted to increase the size of its QE programme by £50bn to £325bn. This latest round of QE completed last month.

The minutes of last month’s MPC meeting show David Miles was the only member – out of nine – to vote for QE to be increased, arguing for a further £25bn.

Legal & General Mortgage Club managing director Ben Thompson says: “With the economy still very uncertain it is no surprise to see interest rates remain unchanged and this is a good thing, as hopefully it will continue to encourage people who want to move house to think about doing so.”

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Is the BoE in danger of getting behind the curve again or is it waiting for some moves from the Eurozone before acting?

  2. I disagree, BOE should increase rates and people should stop living to their means on artifically low rates. Raise them up, it would be good for the markets

  3. I agree with the IMF – reduce rates and increase QE.

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