Bank of England Holds Rates at 0.5%

The Bank of England has held UK interest rates at a record low of 0.5%.

It has also decided not to extend its quantitative easing programme, designed to stimulate lending in the economy, beyond the £375bn already spent.

Rates have been at 0.5% since March 2009, with the market expecting a small rise early next year.

In two weeks, the Bank will reveal how members of its rate-setting committee voted on the rates decision. Last month, two members voted for a rise.

Ian McCafferty and Martin Weale voted to raise rates to 0.75% from 0.5%, as they had in August. The other seven members of the committee, including Bank governor Mark Carney, voted to keep rates unchanged.

There has been intense speculation over when the Bank will start to raise rates again.

Markets are expecting an increase some time in the new year, although some commentators think it could be later this year as the Bank may not want to raise rates close to a general election, scheduled for May 2015.

via BBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.