Bank of England

The Bank of England’s Monetary Policy Committee (MPC) has kept interest rates unchanged again.

The Bank Base Rate has been at its historic low level of 0.5% since March 2009.

At the beginning of the week, Citi predicted interest rates in the UK will remain at low for 4 more years as the economy struggles to recover.  This is a year longer than originally expected.

The majority of high street lenders have reduced their rates over the past few months and there are some very competitive deals for new purchases and remortgages at all loan to values.

The MPC also agreed to keep it’s Quantitative Easing (QE) programme at the current level of £375bn.

The QE programme involves buying assets – usually Government bonds – using money it has simply created. The institutions selling those bonds (either commercial banks or other financial businesses like insurance companies) then have “new” money in their accounts, which boosts the money supply.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.