Bank Of England

Bank of EnglandThe Bank of England has left its main interest rate at 0.25% but says another cut is still a possibility.

The decision of the Monetary Policy Committee (MPC) to leave rates at their new, historically low, level was no surprise.

Last month the Bank halved its bank rate from 0.5% as it tried to ensure the stability of the UK’s banking system in the aftermath of the June Brexit referendum vote.

That was the first rate cut since 2009.

But the Bank said again that it might cut rates further in the coming months, even though the immediate economic after-shock of the Brexit vote now appears to be weaker than first thought.

“A number of indicators of near-term economic activity have been somewhat stronger than expected,” the Bank said in the minutes of its latest MPC meeting.

It added that if its economic forecasts in November were similar to those it had formulated in August, then “a majority of members expected to support a further cut in bank rate to its effective lower bound at one of the MPC’s forthcoming meetings during the course of the year.”

The Bank noted that a variety of economic indicators have suggested that the UK economy has shrugged off the post-referendum surprise in the short-term.

As a result, the Bank is not as gloomy about the short-term state of the economy as it was a month ago.

But it said that it still expects the pace of economic activity in the July-September period to have halved from the growth rate recorded earlier in the year.

UK interest rates have been held at 0.5% once again by the Bank of England.

All nine members of the Bank’s Monetary Policy Committee (MPC) have voted to keep rates at their record low, where they have now been for seven years.

The decision to freeze rates comes amid worries about global growth and uncertainty ahead of the EU referendum.

The Bank said uncertainty in the run-up to the referendum on EU membership – to be held on 23rd June – had hit sterling, and that UK economic growth could slow.

“There appears to be increased uncertainty surrounding the forthcoming referendum,” policymakers said and

“That uncertainty is likely to have been a significant driver of the decline in sterling”, “It may also delay some spending decisions and depress growth of aggregate demand in the near term.”

BOEAll mortgage transactions on hold as BoE hit by technical problems

UK borrowers cannot access a mortgage right now as the Bank of England confirmed a key payments system has been hit by technical problems.

The Boe says it identified a technical issue this morning related to some routine maintenance of the real time gross settlement system payment system and has paused settlement while it resolves it.

The RTGS system allows money to be transferred between banks in real time to fund investment banking and consumer loans.

The fault has affected the Clearing House Automated Payment System, which processes high value same-day transfers, used by solicitors to transfer the mortgage during the house-buying process.

The Boe says it is working to address the issue as quickly as possible and plans to restart the RTGS payment system in a controlled manner.

It says the most important payments are being made manually and says all payments made today will be processed.

It is unclear whether house purchases are being included in the important manual transactions. The Council of Mortgage Lenders says it has yet to be alerted to problems by its members.

The Chaps system moves billions of pounds every day between Britain’s main banks and building societies.

In September 2014, Chaps processed 3.2 million payments worth £5.8trn with an average volume of 145,638 a day.

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

The quantitative easing programme is unchanged at £375bn.

Rates have been at 0.5% for five years, but as the economy recovers there are expectations of a rise early next year.

Last month, minutes of the Bank’s interest rate meeting in early August showed that two policymakers voted for a rise.

This was the first time in three years that rate-setters on the Bank’s nine-member Monetary Policy Committee (MPC) had done so.

Minutes of the latest MPC meeting are due to be published next week.

Bank governor Mark Carney has made clear that any rate rises would be small and gradual.

BOEThe Bank of England’s Monetary Policy Committee has once again voted to keep base rate at 0.5 per cent, the 61st month of record-low rates. The MPC also voted to keep its programme of quantitative easing at £375bn.

The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.5% on 5 March 2009. A programme of asset purchases financed by the issuance of central bank reserves was initiated on 5 March 2009. The previous change in the size of that programme was an increase of £50 billion to a total of £375 billion on 5 July 2012.

The Bank of England monetary policy committee has voted to keep base rate at a record-low 0.5 per cent for the 38th consecutive month and will keep its programme of quantitative easing at £325bn.

Base rate was cut to 0.5 per cent in March 2009, on the same day the Bank of England initiated a programme of Quantitative Easing (QE) worth £75bn.

The Bank of England’s monetary policy committee has voted to keep base rate the same at a record-low 0.5 per cent. This will be for the 37th consecutive month

Quantitative easing to stay at £325bn

The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to increase the size of its asset purchase programme, financed by the issuance of central bank reserves, by £50 billion to a total of £325 billion.

In a November’s Mortgage magazine over half of mortgage advisers polled said they expected the base rate to stay at 0.5% until 2014 or longer as the global economic outlook darkens, while 34% said they expect an increase in 2013.

Last month the Centre for Economics and Business Research (CEBR) predicted interest rates to stay at 0.5% until 2016. Its other forecasts included inflation falling to 1.7% by Q4 and to remain around 2% thereafter, and for quantitative easing to increase to a total of £400bn over 2012.

The Bank of England’s Monetary Policy Committee. Hold UK interest rates at their record low of 0.5%

Interest rates have not increased since March 2009.

Consumer prices inflation (CPI) peaked in September at 5.2% – more than double the Bank’s 2% target – and has since fallen to 4.8% in November.

The Bank of England’s Monetary Policy Committee have again today voted to keep the base rate at its historical low of 0.5% and have also decided not to increase quantitative easing, currently standing at £275bn. 

Consumer Prices Index (CPI) inflation rate fell to 5.0% in October from 5.2% the previous month and although this is higher than the Government’s target, the instability of the worldwide economies continues to be the principal factor in the MPC’s decision-making. 

Many economists now believe that the Base Rate will remain at its current level for the foreseeable future.

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