Interest rates have been held yet again by the Bank of England at 0.5 per cent today (May 9th), it was announced by the institution.
The base rate has been held at the record low of 0.5 per cent since March 2009, meaning it is more than four years since the Monetary Policy Committee (MPC) last voted for a change.
There is speculation that the change of governor at the Bank of England – with Mervyn King set to be replaced by David Carney soon – might lead to shift in monetary policy.
Analysts were not surprised by the decision to hold the base rate at 0.5 per cent for another month and Barry Naisbitt, chief economist at Santander UK, described the move as “widely expected”.
He said: “The Inflation Report to be published later this month should provide further information on how the MPC sees the economy evolving.”
The news the UK avoided slipping into a triple-dip recession earlier this year by recording 0.3 per cent growth in the first quarter took pressure off the MPC to act on interest rates.
Find out about commodities trading and learn CFD strategies at City Index
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.