Interest Rates Frozen No More QE
Published / Last Updated on 03/04/2013
Interest Rates Frozen No More QE.
The Bank of England monetary policy committee has met today and again chosen to keep interest rates frozen since 5 March 2009 for the 49th month in succession at 0.5%pa.
In addition, no further quantitative easing was proposed as requested by many to stimulate the economy. It has been has been held at £375bn.
Our view
It is no surprise that the Bank of England are not pumping more money into the economy given that the Budget 2013 had lots of good news for small businesses to stimulate the economy.
Interest rates remain a key thought. In the US, rates are even lower and their economy is recovering. Our recovery is slower and more exposed to the European recession.
We expect interest rates to remain low and no more QE as the government and Bank of England sit tight and wait to see how the current budget reforms and stimuli take shape.