Interest Rates Mark One-Year Anniversary At Historic Low

The Bank of England's Policy Committee (MPC) today held interest rates steady for March. The bank's base rate has now been at the historic low of 0.5% for a whole year.  

Commenting on the decision, George Cowcher, chief executive of the Derbyshire and Nottinghamshire Chamber of Commerce, said: "The economy remains extremely fragile and with a general election looming, it comes as little surprise that the Bank of England has decided to keep the base rate at its historic low for another month.

"Whilst today's decision is welcome, it looks highly likely that rates will stay down at 0.5% until the end of the year and possibly beyond, given lingering concerns about the strength and sustainability of the recovery.

"It is telling that the Bank of England has still not formally announced the end of its Quantitative Easing programme. Although economic activity appeared to bounce back in February following the significant weather-related hit it took in January, VAT hikes and falling house prices mean that the threat of a double-dip recession remains a possibility.

"It is likely that the economy will go through many twists and turns over the coming months as it crawls out of recession. The primary focus needs to be on rebuilding confidence to ensure the recovery gathers pace."


Bookmark and Share
external link
Advertise Here
external link
Advertise Here