Interest rates kept on hold at 0.5%

by Aaron Strutt

Apr 08 2011

The Bank of England's Monetary Policy Committee once again kept the base rate on hold at 0.5%. There's been no change now for 25 months and no new quantitative easing measures were unveiled.

Last month, three MPC members voted for a rise to the base rate and inflation increased to 4.4%. It seems more likely that we are now a step closer to raising the Bank of England base rate.

Following the decision by the European Central Bank to raise interest rates to 1.25% from the record low of 1%, many European variable rate borrowers will be worse off. Interest rates had been held at 1% for just under two years following the financial crisis.

April 8, 2011