Bank of England Interest Rates Frozen
Published / Last Updated on 04/10/2012
Bank of England Interest Rates Frozen.
Yesterday, the Bank of England Monetary Policy Committee (MPC) confirmed that it would hold Bank of England base interest rates at 0.5%.
In addition, the quantitative easing program (QE) of buying back government debt assets to release cash into the economy was also frozen by the MPC at £375 billion.
Our view
The economy remains stable but flat. It will take a long time to recover and we agree that no further QE is needed at this time. Meanwhile, the US has also confirmed that its low interest rate of just 0.25% will be maintained until at least 2015, giving a clear picture that this is going to be a long haul escape from recession.
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