The Bank of England has left interest rates unchanged at 0.5 per cent for the third consecutive month. Having performed a series of interest rate cuts in the last nine months, and even instigating a policy of quantitative easing, the Bank announced no new measures to stimulate the economy . Savers will be dismayed by the news, with savings accounts providing dismal returns at present.
The Bank of England continues to monitor the state of the British economy, displaying a cautious approach despite intimations that a recovery may be developing. New figures revealed by a survey from the Halifax show that house prices rose by 2.6 per cent in the UK in May compared to April - the fastest rate of growth since 2002. Despite this positive news, however, the Bank of England maintains its cautious approach, warning that the economic outlook remains uncertain in its latest Inflation Report.
The Bank of England has faced pressure from business groups to expand its £125 billion quantitative easing scheme. Spending of the current sum is set to be complete by July, whilst the Treasury has said to Bank can spend up to £150 billion.
Bank of England Holds Interest Rates Despite Positive Signs
Financial Services > e-banking > Banking news
Bank of England Holds Interest Rates Despite Positive Signs
Fri, 05 Jun 2009
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