View more on these topics

BoE holds base rate at 0.5%

The Bank of England’s Monetary Policy Committee today voted to keep base rate at 0.5 per cent for the 15th consecutive month.

It also agreed to maintain the size of the asset purchase programme at £200bn.

The last change in base rate was a reduction of 0.5 per cent to 0.5 per cent on March 5 2009.

A programme of asset purchases, financed by issuing central bank reserves, was also initiated on March 5 2009. The most recent change in the size of the programme was an increase of £25bn to a total of £200bn on November 5 2009.

Legal & General director of mortgages Ben Thompson says: “There are plenty of differing opinions from economists at the moment about whether inflation or deflation is a greater threat to the economy, but one thing that we can all agree on is that we are not out of the woods yet.

“With an emergency Budget imminent, there was no way that the committee was going to increase the Base Rate today. However there is significant disparity in views about when this situation may change. It can be best summed up in just one word – insecurity.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com