Bank of England base rate kept on hold
The Bank of England's Monetary Policy Committee has maintained the Bank Rate at 0.5% once again and it has now been hold for nearly five-years. Many market commentators are also not predicting an increase anytime soon.
Jonathan Loynes of Capital Economics told the BBC: "The MPC's decision to leave policy on hold today was almost certainly the last to be taken under the unemployment-focused forward guidance adopted just six months ago.
"But whatever replaces it, interest rates are likely to remain at very low levels for a long time yet.
"One option is simply to switch the focus to a different variable, such as wages growth or nominal GDP. But the unemployment rate experience has proved the folly of relying on a single indicator to represent the overall state of the economy."
February 7, 2014
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