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Four-year anniversary of base rate at 0.50%

Four-year anniversary of base rate at 0.50%

Category: Banking

Updated: 07/03/2013
First Published: 07/03/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Bank of England base rate has remained on hold for the forty-eighth consecutive month, marking four years since it was cut to it historic low of 0.50%.

The Monetary Policy Committee (MPC) also voted to keep the Government's quantitative easing (QE) amount at £375 billion, despite calls for the amount to be increased to £400 billion to boost the economy further.

Minutes from last month's MPC meeting revealed that despite an unanimous vote to keep interest rates on hold, three members had voted in favour of increasing QE by £25 billion, including the Bank of England Governor, Sir Mervyn King.

Early indications have suggested that members were once again divided with regard to further QE.

Barry Naisbitt, chief economist at Santander, said: "Although the MPC did not vote to extend QE today, it is clearly possible that more QE could be announced in the coming months to boost economic activity."

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