BoE holds base rate at 0.5% once again

by Aaron Strutt

Sep 03 2014

The Bank of England's Monetary Policy Committee has again voted to keep base rate at 0.5%, the 66th consecutive month the rate has been held at its record low.

In a suprise move the European Central Bank (ECB) has cut its benchmark interest rate to 0.05%, and introduced new stimulus measures. The ECB previously cut its rate from 0.25% to 0.15% in June.

Aaron Strutt, product manager at Trinity Financial, says: "It is difficult to see how the Bank of England will increase the base rate while one of the UK's main trading partners is struggling so much. The ECB is still lowering rates and trying to boost growth, but unemployment is still a big issue."