Bank of England holds interest rates at September meeting
The Monetary Policy Committee has once again voted to keep rates on hold.
The Bank of England has held interest rates at 0.5% following the September meeting of the Monetary Policy Committee (MPC).
Today’s announcement was, once again, no surprise. However, the minutes of this month’s meeting will be carefully scrutinised to see how many, if any, members voted for a rate rise.
Last month, MPC members Ian McCafferty and Martin Wheale voted for rates to increase to 0.75%. The pair argued that decreasing unemployment and growth in UK GDP were sufficient reasons to start to inch rates up. The rest of the MPC disagreed, meaning an overall 7-2 vote in favour of keeping rates on hold.
Rates have been held at their record low of 0.5% since March 2009.
Analysts are split on when a first rise might occur. Investec Chief Economist Philip Shaw said he believes the first increase will come in November.
He said: "There is typically a preference, if possible, to avoid monetary policy becoming a political football in an election campaign."
But the Treasury's round-up of economic forecasts in August found that the majority still believed rates would be at 0.5% by the end of the year. Many have pencilled in a first rise in the first quarter of next year.
However, mortgage interest rates are continuing to increase already, so if you want to fix your mortgage rate ahead of a potential Bank of England rate rise you should start shopping around sooner rather than later.
More on the economy:
What next for inflation and interest rates?
Queen's Speech 2014: what it means for you
Beyond GDP: The power of lollipops, green space and chirping birds
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