Bank maintains Interest Rate at 0.5%

The Bank of England has this week announced that it will be keeping the Bank Rate at the record low of 0.5%.

This is not surprising having been held at this level since 5th March 2009 and the general UK and European economies having not improved much.

However there has been some talk and speculation of potential cuts in the interest rate further, although this is widely dis-regarded by Key Bank officials who do not believe going any lower will have any impact.

Further to maintaining the Bank Rate, the Monetary Policy Committee also decided to keep the size of the Asset Purchase Programme, known widely as quantitative easing, at £375 billion.

It last decided to increase this back on 5th July 2012 when it went up from £325 billion.

The Bank will also continue to offer to purchase high-quality private sector assets on behalf of the Treasury, financed by the issue of Treasury bills, in line with the arrangements announced on 29 January 2009 and 29 November 2011.

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