Bank of England leaves interest rates unchanged

London_istockDespite speculation that the Bank of England’s Monetary Policy Committee might have considered cutting interest rates, or indeed extend the existing programme of Quantitative Easing (QE), no changes to either were announced when the MPC’s decision was revealed at noon today. Bank base rate has now been on hold at 0.5% for over four years and with a change in Governor imminent, it seems the members of the MPC are not keen to make any significant changes, before Mark Carney takes up his post ...

Budget 2013: Annuity incomes to fall on the back of more Quantitative Easing?

Falling profitsDespite small rises in Annuity rates over the past few weeks, yesterday’s Budget has dashed hopes that the trend will continue. Pension Annuity comparisons show that during February at least five Annuity providers have increased their rates, including a 3% rise from Aviva. However, gilt yields have dropped since their peak in the middle of February and there was more bad news yesterday, when in his fourth Budget, the Chancellor George Osborne, announced that the Bank ...

Savings: Bank of England considers negative interest rates. How would your savings accounts be affected?

Bank of England considers negative interest rates. How would your savings accounts be affectedThe prospect of negative interest rates was raised yesterday by Paul Tucker, a Deputy Governor of the Bank of England. Whilst most experts believe it is unlikely to happen, the thought will understandably send shivers down the spine of those of us with savings accounts. The problems facing savers have been well documented; Bank base rate has been stuck at 0.5% since ...

Interest rates on hold for yet another month, but inflation remains a worry

LondonThe Bank of England’s Monetary Policy Committee has decided to leave base rate unchanged at 0.5% for another month. The decision will hardly come as a surprise, after nearly four years without an increase; however savers, who currently have to contend with huge cuts in interest rates on their savings accounts, will still be left disappointed. The Bank also decided not to increase the existing £375 billion package of Quantitative Easing (QE). The debate over QE continues to ...