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BoE leaves base rate at 0.5%

The Bank of England bank rate has been held at 0.5 per cent for the 29th month in a row and quantitative easing has been kept 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.

According to the last available minutes, the BoE’s Monetary Policy Committee was split 7-2 in favour of keeping rates at 0.5 per cent.

Legal & General Mortgage Club managing director Ben Thompson says: “Although as always there is mixed economic news and results in both domestic and worldwide economies, if anything the headwinds in terms of recovery have become stronger over the last month, and these will no doubt continue to slow the pace of any UK recovery. We see no indicators or statistics that would have provided even the faintest argument for a rate rise today, and we remain of the view that rates will stay as they are for the rest of this year.”

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Comments

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  1. 2 Predictions.

    There will be no interest increase untill the earliest September 2012.

    Removing all vested interest. The RDR will be a cataclysmic disaster for the Financial services industry as a whole, and the consumer specificaly. Medium and long term consumer savings will further evaporate comparatively.

    Have a great day.

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