Monthly Archives: July 2014

BOEThe Bank of England has held UK interest rates at a record low of 0.5% for another month

The size of the Bank’s economic stimulus programme, known as quantitative easing, was also kept unchanged at £375bn.

Last month, Bank governor Mark Carney hinted that rates could increase later this year as the UK’s economic recovery becomes more secure.

When it comes, any rise in rates is expected to be small.

Speaking last month, Mr Carney said “we expect that eventual increases in Bank rate will be gradual and limited”. He has also talked of rates hitting a “new normal” of 2.5% by 2017.

The number of people out of work is also falling, with the unemployment rate down to 6.6% in the three months to May.

On the other hand, there is little pressure to raise rates to keep prices in check – the inflation rate fell to 1.5% in May, down from 1.8% in the previous month. The Bank’s inflation rate target is 2%.

Interest rates have been at their record low of 0.5% since March 2009.