The Bank of England today announced that its Monetary Policy Committee had voted to maintain the UK Interest rates at 0.5% for yet another month.
The MPC also voted to keep the size of the asset purchase programme, known as quantitative easing, at the same size of £375 billion.
That was pretty much as the analysts had predicted as although there is recent evidence of a recovery in the UK economy, the Banks earlier guidance had indicated there would be various factors required before a rise.
Indeed the British Chambers of Commerce said on Thursday that a rate rise soon would be “premature”.
BCC chief economist David Kern said:
“The decision to maintain interest rates and quantitative easing was unsurprising and appropriate.
“Businesses need clarity that encourages them to increase investment, and at the moment the MPC is delivering this. However its efforts are hampered by repeated calls for interest rate rises whenever a piece of positive news is published.
“Such a move would be premature. The MPC should instead strengthen the clarity of its forward guidance message.”
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