Base rate kept on hold at 0.5%

by Aaron Strutt

Aug 05 2011

The Bank of England Monetary Policy Committee (MPC) has kept base rate at its record low of 0.5% once again. The Bank also kept its program of quantitative easing at £200bn.

In a poll by the BBC, a majority of economists expected interest rates to remain unchanged next year. The survey asked 32 forecasters, who are regularly polled by the Treasury, what they thought will happen to interest rates. The vast majority, 26, predicted that there would be no rise this year, and three said there would be no rate increase until 2013.

Minutes from the MPC meeting in July showed that the voting went seven to two in favour of holding rates at 0.5%.

August 5, 2011