Bank of England holds interest rates in February
No surprise as Bank Base Rate held at 0.5%.
Bank Base Rate has been held at 0.5%.
The Bank of England's Monetary Policy Committee (MPC) has opted to leave Bank Base Rate unmoved at its current record low level, where it has stood for nearly six years.
In recent months the members of the MPC were split on what to do with Base Rate, with two members regularly voting for an increase. However, with inflation plummeting to just 0.5%, last month's vote to freeze Base Rate was unanimous. We will find out later this month the exact breakdown of February's MPC vote.
An interest rate rise now doesn't look likely until 2016 according to the money markets.
More from lovemoney.com:
FCA accuses peer-to-peer and crowdfunding sites of misleading savers
Most Recent
Comments
-
I have just been watching Max Keiser and Stacy Herbert, and they are telling us to be prepared for negative interest rates, which means you will have to pay for the privilege of keeping your money in a bank account. They quote the following article: "'Banks don't have a need for deposits, and the demand for loans by households and firms is weak,' Niels Storm Stenbaek, chief economist of the Danish Bankers' Association, said in a phone interview.'The likelihood has never been greater' that banks will pass on negative rates to customers , he said." Just when one thought things couldn't get any worse...
REPORT This comment has been reported. -
They cannot decide to raise rates. It would wreck certain banks, the housing market and the economy in general. They cannot keep borrowing 100 bn a year to finance these low rates. If I was in charge, I wouldn't sleep at night.
REPORT This comment has been reported.
Do you want to comment on this article? You need to be signed in for this feature
06 February 2015