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No change to base rate or QE

The Bank of England’s Monetary Policy Committee has voted to keep base rate at 0.5 per cent for the 30th consecutive month.

The committee also voted to keep its programme of 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.

Legal & General Mortgage Club managing director Ben Thompson says: “We expect rates to remain unchanged for a long time with QE kept under constant review and this will be tremendous news for borrowers but quite the opposite for savers, many of whom have had to dig deep into their savings to boost their income and cover costs.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. As an individual who has been through the mill over the past few years (reduncancy leading to debt leading to divorce leading to increase in mortgage) I can say that I am relieved at this decision.

    Those people who are complaining at the loss of income due to low rates on their savings should understand that people in my position think that the grass is far greener on their side of the fence.

  2. What a surprise! well at least the MPC enjoyed their biscuits!

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