News: Interest Rates Held at 0.5%

Thu, 09 Jul 09

The Bank of England (BoE) has kept interest rates on hold at 0.5% for the fourth month in a row.

The move was widely expected and comes as the BoE continues to assess the impact of its programme of quantative easing, which has already involved ploughing around £75bn into the economy through buying assets such as government bonds and company debt.

In May the BoE announced it plans to extend the programme by a further £50bn. It also has the option to extend the amount by a further £25bn.

This latest decision comes as official data shows that the UK economy shrunk by 2.4% during the first three months of the year, the sharpest decline for more than 50 years.

Commenting on the BoE's decision Keshav Thukaram, managing director of Smartlandlord.co.uk said: “With the UK’s recovery prospects still fraught with uncertainty, any move to push up interest rates remains a long way off.  Interest rates are on hold indefinitely.”

By Joe Lepper

See also  - Mortgages, House Price Indices

Back to: News Index