Bank Of England Maintain Base Rate
It has been announced today that the Bank of England’s base interest rate will remain at 0.5 per cent for the 24th month in a row.
The news will be music to homeowners ears as it means that mortgage repayments on property won’t increase, however, those with money in savings accounts will be disappointed as their balances remain relatively static.
The Monetary Policy Committee’s vote to keep the interest rate at 0.5 per cent means that it has been at a record low for two years.
Last month, members voted 6-3 not to increase the rate, but this month’s voting breakdown has yet to be revealed.
The Bank of England had been under pressure to raise interest rates because of sharp increases in inflation (in January, the figure stood at four per cent, double the recommended level).
It is thought that the decision to keep the base rate the same was due in part to the fact that GDP fell by 0.6 per cent in the last quarter of 2010, and also because of rising unemployment.
