The Bank of England has voted to hold interest rates at 0.5 per cent once again. It is the sixth consecutive month that the banks Monetary Policy Committee has opted to maintain rates, though the Committee also voted this month not to alter their quantitative easing programme, keeping it at £175 billion, which is expected to take another two months to complete.
With the manufacturing output showing signs of recovery, house prices rising slightly in August and activity in the services sector expanding again, the news came as no surprise though the sterling did still rise on foreign exchange markets.
The announcement is bad news for savers, with rates likely to remain meagre on the majority of savings accounts . Interest rates have begun to increase on some accounts, with banks looking to attract a regular source of income, though many instant access accounts continue to pay paltry sums. However, homeowners on tracker mortgages continue to enjoy low repayments on their loans, freeing up more of their disposable income.
Last month's vote saw Bank of England governor, Mervyn King, and two of his colleagues, vote to expand the quantitative easing programme to £200 million. With details of this month's vote to be published on September 23rd, it remains to be seen if any other members have since shifted to the Mr King's position.
Bank of England Vote to Hold Interest Rates
Financial Services > e-banking > Banking news
Bank of England Vote to Hold Interest Rates
Fri, 11 Sep 2009
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