Bank Of England Base Rate Announcement 08/07/2010
The Bank of Englands Monetary Policy Committee (MPC) today held interest rates at their historic low of 0.5%. Interest rates have now been at 0.5% since March 2009.
The Monetary Policy Committee of the Bank of England voted to maintain the Base Rate at its current level amid ongoing economic uncertainty.
The holding of rates was widely expected, despite last months voting of one member of the MPC to increase rates to 0.75% due to a pick-up in inflation. Inflation remains above the central bank's 2% target at 3.4%.
Most analysts have ruled out a hike in rates until next year. Policy members last increased the base rate in the Summer of 2007 owing to fears about the global economy.
The decision will be welcomed by mortgage borrowers on tracker deals, which are linked to the Bank Base Rate, and also by people sitting on the Standard Variable Rates (SVRs) of those lenders who have promised not to increase the rate by more than a given margin over Base Rate.
The MPC also left unchanged its £200bn quantitative easing programme
