Bank of England holds firm on base rate - Economy - News - Moneyfacts

News

Bank of England holds firm on base rate

Bank of England holds firm on base rate

Category: Economy

Updated: 13/01/2011
First Published: 13/01/2011

MONEYFACTS ARCHIVE
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 It is now over 6 months old so the content may be out of date.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 base rate of interest will remain at its historic low of 0.5% for at least another month, the Bank of England has revealed.

The Bank has also decided to maintain the £200 billion programme of quantitative easing (QE) at its existing level.

Base rate dropped to 0.5% in March 2009 in order to help boost the economy.

While the move has meant lower mortgage repayments for homeowners, savers have had to contend with low interest rates on their savings accounts.

However, pressure has recently been growing for the Monetary Policy Committee to sanction a rise.

At the December meeting of the committee, a three way split occurred amongst the members as to the appropriate course of action to take.

Andrew Sentance voted to increase interest rates to 0.75%, while Adam Posen preferred to maintain rates but increase the size of QE by a further £50 billion to £250 billion.

All other seven members of the committee voted to maintain the size of the QE programme and leave interest rates at 0.5%.

The minutes of today's MPC meeting will be released later this month.

While savers will no doubt be disappointed by the lack of action, all is not lost.

There are still some competitive savings accounts out there if you know where to look.

That place is our savings best buy charts.

The best savings rates available at present are through long term fixed rate bonds, which are listed alongside all manner of accounts which will suit all types of saver.

Find the best savings rates for you - Compare savings accounts


Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Base rate remains unchanged in surprise decision

Earlier today, the Bank of England’s rate setting committee announced that it had voted decisively to keep base rate on hold at its record low of 0.5%. But what does it mean for you?

Budget 2016 – an overview

Well, George Osborne has just revealed the Budget for 2016 – his eighth so far as Chancellor – and as ever, there were some winners and losers from the whole thing. Below is a quick overview of the key points.

What does a US Fed rise mean for the UK?

The US Federal Reserve has decided to raise interest rates, and although you may not think that financial events happening in the US will have much of an impact on UK soil, you may be surprised…
 
Close