UK interest rates remain at record low

As expected the Bank of England voted yesterday to keep interest rates on hold at 0.5%. The Bank’s Monetary Policy Committee have not changed interest rates now since March 2009, and concerns about the state of the UK economy, along with nervousness about the Eurozone, led the vast majority of experts to predict that rates would be left on hold for a further month. How Bank Base Rate has fallen: 8 October 2008: 4.5% 6 November 2008: 3.0% 4 December 2008: 2.0% 8 ...

Bank Base rate held at 0.5%

In an unsurprising move the Bank of England’s Monetary Policy Committee has kept interest rates on hold at 0.5%. Interest rates have now remained unchanged since March 2009. The MPC has also decided not to restart its quantitative easing, which has previously injected £200 billion into the UK economy. In a move also widely expected the European Central Bank (ECB) also left interest rates on hold at 1.5%. Poor economic data Most economists had not expected a change in interest rates with recent data showing that the economy is still weak; the OECD (Organisation for Economic Co-operation and Development) today warned that growth in the ...

Interest rates on hold yet again

There are only so many ways to write a story on interest rates remaining unchanged; however the bare facts remain the same, no rise in rates and no further Quantitative easing measures. To be fair recent economic data showing a slowdown in sectors of the economy pointed to no change this month and indeed in the short term. In a separate move the European Central Bank left rates unchanged, following last month’s rise, at 1.25%. Although inflation, as measured by CPI (Consumer Prices Index) is currently running well above the bank’s 2% target, the members of the Monetary Policy Committee (MPC) clearly ...