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MPC holds interest rates at 0.5%

MPC holds interest rates at 0.5%

Category: Economy

Updated: 07/07/2011
First Published: 07/07/2011

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 It is now over 6 months old so the content may be out of date.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's rate-setting committee has confirmed that interest rates will remain on hold at 0.5%.

It means that there has been no change in the measure since March 2009, when the Monetary Policy Committee (MPC) cut rates from 1.0% to 0.5%.

The MPC also voted not to inject any more money into the economy through its quantitative easing (QE) programme.

Minutes released later in the month will show whether there was a split in opinion amongst the members of the committee.

In previous months, Martin Weale and Spencer Dale have voted to increase the measure to 0.75%, and it is likely that the minutes will once again show a 7-2 split in favour of keeping rates unchanged.

Andrew Sentance recently finished his nine month stay on the committee, having consistently voted to increase rates to 1.0% in his time as a member.

The announcement comes after the savings group Save Our Savers wrote to the MPC to urge them to increase rates to help savers battle the effects of low interest rates and relatively high inflation.

The group claims that some £50 billion has been eroded from the value of savings pots on the last year alone.

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