You are here: Home - Investing -

Interest rates held at 0.5%

Written by:
Interest rates have been held at 0.5% for yet another month, the Bank of England's Monetary Policy Committee has announced.
Interest rates held at 0.5%

Yesterday marked the fifth anniversary since the Bank slashed the base rate to record low levels, benefiting borrowers and savaging savers.

Analysts believe rates will not rise until spring 2015.

The Bank also voted to keep its £375bn quantitative easing (QE) programme unchanged.

Last month Bank Governor Mark Carney ditched his forward guidance policy linking a rise in rates to jobless figures.

Carney said last year that rates would not begin to rise until the unemployment rate in the UK fell to 7%.

However, a rapid decline in the unemployment rate – which Carney conceded has surprised the Bank – left the rate at just 7.1% by the end of 2013.

As such he has been forced into something of a U-turn on forward guidance, attempting to push back expectations of a rate rise.


Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week