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Bank of England freezes interest rates again
Accountancy News |
04/03/2010
The Bank of England has chosen to freeze interest rates for the 12th successive month.
In a widely expected move, the Bank's Monetary Policy Committee (MPC) held the base rate at the historic low of 0.5 per cent, the level it has resided at since March 2009.
The MPC has also decided against injecting any more money into the economy through quantitative easing, after bringing the £200 billion stimulus programme to a halt last month.
Ian McCafferty, chief economic adviser at the Confederation of British Industry, said it would have been "surprising if the Bank had done anything else".
"In keeping its quantitative easing policy and interest rates unchanged, the MPC has weighed the recent, fragile improvement in economic activity against residual concerns about inflationary pressures and the weak pound," he added.
"As the economic recovery has extremely shallow roots, the Bank should stand ready to continue with its quantitative easing programme, as required."
Posted by John Lynes
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