Bank base rate at 0.5% for the sixth month in a row
As expected, the Bank of England decided at today’s monthly meeting of its Monetary Policy Committee (MPC) to maintain its key interest rate at 0.5%. The base rate has now been at that level, a record low, since March this year.
The Bank of England has chosen to hold the base rate at 0.5% for the sixth month in a row. The decision by the monetary policy committee (MPC) came as no surprise to experts who predict that interest rates will stay low until next summer.
Seasonal factors resulted in August being, as usual, a relatively quiet month for mortgages – even by this year’s standards. This, coupled with lower Libor and swap rates, has resulted in some lenders making modest cuts in their mortgage rates which can only be good news for consumers.
The Committee also voted to continue with its programme of asset purchases totalling £175 billion financed by the issuance of central bank reserves.
