Interest rate setters at the Bank of England voted unanimously to maintain interest rates at the record low of 0.5 per cent earlier this month, it has been revealed. The minutes from the Bank of England Monetary Policy Committee (MPC) meeting earlier this month have revealed that the MPC also agreed to maintain the £125 billion quantitative easing programme.
Overall, the minutes from the meeting on June 3rd and 4th noted that the previous month had offered positive signs for the economy, with the rate of contraction slowing, business confidence improving and the housing market stabilising. However, the minutes also noted the continued presence of risk, whilst both consumer and business confidence remains 'fragile'.
Interest rates have been brought down to record lows in a bid to help the economy, though it has harmed savers and the returns they are seeing on their savings accounts . The process of quantitative easing, whereby the bank buys government and corporate bonds from financial institutions using new money to boost the money supply, is showing signs of working, according to the MPC minutes. The minutes noted, there is 'tentative evidence that the asset purchase programme was succeeding in boosting the money holdings of institutional investors, a first stage in the transmission mechanism from asset purchases through to the economy'.
Bank of England Vote Unanimously to Hold Interest Rates
Financial Services > e-banking > Banking news
Bank of England Vote Unanimously to Hold Interest Rates
Wed, 17 Jun 2009
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