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Base rate decision made unanimously

Base rate decision made unanimously

Category: Economy

Updated: 21/10/2009
First Published: 21/10/2009

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 It is now over 6 months old so the content may be out of date.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 decision to freeze the base rate of interest at the all time low level of 0.5 per cent was made unanimously, minutes from the Monetary Policy Committee's (MPC) last meeting have revealed.

The decision was not unexpected, as the rate has been frozen at this level since March.

Many observers and analysts have predicted that the rate will remain at 0.5 per cent until 2011, and may not move above two per cent until 2014.

Minutes from the meeting have revealed that the decision for the Bank of England to continue with its £175 million quantitative easing programme was agreed on by all nine members of the committee.

The MPC said that developments over the month of September had been generally positive on both a domestic and international basis.

"Mortgage arrears had risen only slightly in the second quarter (of the year) and there were tentative signs that commercial property values, collateral for a significant proportion of loans, had begun to stabilise," it said.

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