UK interest rates remain at 0.5%

For the 27th month in a row the Bank of England’s Monetary Policy Committee (MPC) has voted to keep interest rates on hold at 0.5%. In addition no further quantitative easing measures were announced. Despite fears over inflation, which at 4.5% remains well above the Bank’s target of 2%, the decision to keep rates on hold will come as little surprise, although a rise is expected at some point. James Knightley economist at ING said believes that the UK’s poor economic data has led some to "push back expectations for the timing of the first UK rate hike to March next year". "However, with ...

Bank Base Rate stays at 0.5%

The Bank of England has left interest rates unchanged; Bank base rate remains at 0.5% Furthermore, no new Quantitative easing (QE) measures will be introduced. Whilst not a surprise the decision comes despite inflation continuing to rise and growing calls for a slow tightening of monetary policy. Indeed the three members of the MPC (Monetary Policy Committee) voted last month for an increase to interest rates. Mervyn King, Governor of the Bank of England, has consistently stated that he believes inflationary pressures are temporary and that inflation will fall towards the end of 2011 and into 2012. However many experts believe that ...

Interest rates on hold for the 20th month in a row

In a widely expected move the Bank of England’s MPC (Monetary Policy Committee) has left interest rates on hold again. Furthermore no new additional Quantitative Easing QE) has been announced. The news comes on the day when the Halifax reported house prices fell by 0.1% in November. Although the decision will not come as a surprise, with CPI (Consumer Price Index) at 3.2% the Bank will need to keep a careful eye on inflation in months to come and interest rate rises may be needed to steer inflation back towards the 2% target. The news will be greeted positively by mortgage holders and businesses, ...