Bank Rate Stays at 0.5%
The Bank of England’s Monetary Policy Committee today once again voted to maintain the base interest rate at 0.5%
This is the fourth consecutive month that the MPC have kept the base rate at the historically low figure.
Whilst there have been sporadic reports that "the worst of the recession is over" Ian McCafferty, the CBI’s Chief Economic Adviser, had a more reserved answer to the MPC’s rate decision;
"With the economy and credit conditions still very weak, the Bank’s quantitative easing programme has further to run. That, rather than interest rates, is the MPC’s main concern.
"After only five months, it is still too early to determine the effects on the wider economy. So, a further extension through the autumn is needed, and clear communication of the Bank’s intentions throughout will be critical in order to prepare the markets."