Interest rates held at 0.5%

Thursday 9th April 2009

The Bank of England has decided to hold interest rates at 0.5 per cent.

The move was widely predicted by analysts as the monetary policy committee (MPC) had already expressed concerns as to how very low interest rates would affect the profitability of lenders, sandwiched between maintaining higher savings rates and low borrowing rates.

Rates had fallen continuously since October last year, to its current historic low.

The MPC also said today it was continuing with its quantitative easing package.

Last month, the chancellor Alistair Darling gave the thumbs up for the MPC to start quantitative easing through creating £75 billion to pump into the UK economy through buying assets.

So far the MPC has spent around £26 billion, and it confirmed today it was continuing with the policy.

Experts predict interest rates could remain at 0.5 per cent even into next year. ADNFCR-1783-ID-19115284-ADNFCR

Related News

Financial attitudes shift in response to credit crunch - 09/04/09
Major life changes are causing people to alter their attitude to savings and finances, after a survey revealed people were becoming less tolerant of debt and less likely to trust people with their money

Bail out everyday Brits, Oxfam urges - 08/04/09
The government should do much more to help Britons get through the downturn, charity Oxfam has said

UK economy contracts by 1.5% - 08/04/09
The UK economy contracted by 1

FTSE 100 sinks lower in early trading - 08/04/09
The FTSE 100 sunk further in early trading to 3,907

World economy set to grow 'by end of year' - 08/04/09
Global economies will begin to grow again by the end of the year but UK markets may be slower than others to recover, the Centre for Economics and Business Research (CEBR) said today

<< Back To News Listings

News Article Search

Quick Apply