No interest rate change for months, says MPC member

by Aaron Strutt

Oct 13 2011

Monetary Policy Committee member David Mills says that it is unlikely the Bank of England base rate will change in the next few months.

In a speech at the Royal Economics Society, Mr Miles is quoted as saying: “Judging by money market interest rates and yields on short dated government bonds - the market expectation is that Bank Rate will not change for many months yet.”

Referring to the effects of the Bank of England asset purchases during 2009/10, Mr Mills says: “A range of estimates suggested that the asset purchases had about the same effect as a cut in Base Rate of between 150 basis points and 300 basis points, increasing GDP by about 1.5% to 2%.”

13 October 2011