Bank of England Base Rate to remain at 0.5%
The BoE Monetary Policy Committee has announced today that rates will be again held at the record low of 0.5%. The base rate has been held at 0.5% since March 2009 and the Bank has indicated that the rate will not even consider a rate increase until the unemployment rate falls below 7%.
The latest figures have the unemployment rate at 7.6% and inflation has fallen to 2.2% according to the Consumer Price Index (CPI)
This is further good news for existing mortgage borrowers, especially those on low variable rates and more bad news for savers with money held on deposit.