Bank Of England Base Rate Announcement 10/05/2010
The Bank of Englands Monetary Policy Committee (MPC) has voted to hold the base rate at 0.5% for the fourteenth consecutive month.
The decision comes as the Lib Dems form negotiations with both the Conservatives and Labour separately to form the next government after the General Election resulted in a hung parliament.
All parties have claimed that bringing stability to the British economy will be at the heart of any deal they make.
The hung parliament is thought to be a contributing factor to the decision to hold interest rates. But it is also believed that if we had a government of whatever colour on Friday morning, we would still have the same announcement.
The MPC is stand alone, so not under any political pressure and the underlying reason for the rate being on hold could be that economy is still fundamentally weak.
