Jun
09

UK interest rates kept at 0.5%

As expected, the Bank of England’s monetary policy committee left its benchmark rate at a record low of 0.5% for the 27th month in a row. It also left its £200bn quantitative easing programme unchanged.

It was the first meeting for new MPC member Ben Broadbent, a former Goldman Sachs economist, who replaced arch-hawk Andrew Sentance.

City economists have put back the likely date for the first increase to this autumn, but many think it won’t happen until next year. A November rate rise is seen as a 60% probability, while markets are not fully pricing in a rate rise until next April.

Source: Guardian

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