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Base rate freeze confirms year at 0.5 per cent

Base rate freeze confirms year at 0.5 per cent

Category: Economy

Updated: 04/03/2010
First Published: 04/03/2010

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 It is now over 6 months old so the content may be out of date.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 0.5 per cent for at least another month, meaning the measure has now spent a year at this record low.

The Bank of England's Monetary Policy Committee (MPC) announced the decision at noon today, following its monthly meeting.

The MPC last cut the base rate in March last year, when it was halved from 1.0 per cent to 0.5 per cent.

There is currently some debate over when an increase will be implemented.

Some analysts believe that a rise is probable later this year, while others have predicted a freeze at 0.5 per cent until at least 2011.

It was also announced that no more money would be injected into the economy through the Bank's programme of quantitative easing.

The most recent change in the size of that programme was an increase of £25 billion to a total of £200 billion on 5 November 2009.

Minutes of the meeting, which show whether the MPC's decision was made unanimously, will be released on 19 March.

Next month's decision will be announced on 8 April.

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