Breaking News: Interest rates remain unchanged
THE Bank of England today kept interest rates at their historic low of 0.5% for the 20th consecutive month and also kept its quantitative easing ceiling at £200m.
The Bank’s Monetary Police Committee has left rates unchanged since March 2009.
The MPC decided not to increase the £200bn quantitative easing programme which aims to pump more money into the economy.
Today’s interest rates decision is brought to TheBusinessDesk.com’s readers in association with stockbrokers Redmayne-Bentley.
Economists have been focusing on the future of the Bank of England’s quantitative easing programme and following the Government’s announcement of major cuts in public spending, the maintaining of the rate at 0.5% prompted forecasts that interest rates may remain below 1% for months, if not years.
David Scott, senior stockbroker at Redmayne-Bentley, said: “Even a suicidal gambling addict would not have betted on there being an interest rate change today and the decision not to embark upon further stimulus through more quantitative easing looks a sensible move, particularly as concerns grow over the high level of UK inflation.
“It remains worryingly at the top end of the MPC’s target range and international investors are increasingly questioning whether or not the bank is committed to its 2% inflation target.
“This has potentially huge implications for future borrowing rates for the Government. Interest rates have now been kept at current levels for 20 consecutive meetings and there appears little prospect in the nearer term that they will move up soon. Andrew Sentence the consistent voter for a rate increase looks set to be disappointed for many months to come.”
