Rates held at 0.5% for three years

INTEREST rates were again held at 0.5% today – marking three years at the historic low.

Any move to change rates prior to this month’s Budget was thought unlikely and the Monetary Policy Committee did not disappoint.

There was also no repeat of the fresh round of quantitative easing announced last month, when the MPC gave the green light to a £50bn expansion of the Bank’s QE programme taking the overall total to £325bn.

Dr Brian Sloan, chief economist at Greater Manchester Chamber of Commerce, said: “The Chamber welcomes the move but is concerned that high street bank funding costs and the need to increase capital ratios will constrain the availability of capital and increase borrowing costs for businesses and consumers.
 
“The Chancellor announced a credit easing scheme in the Autumn Statement but we are still waiting for the final details. Along with the Chamber’s Budget wish list, that includes abolishing the planned inflation linked business rate rise, details of the credit easing scheme must be released that are clear and present an accessible scheme for businesses.”