Bank of England Base Rate remains at 0.5%
The BoE Monetary Policy Committee has today again announced that rates will continue to be held at 0.5%. The base rate has been held at the record low of 0.5% since March 2009. Having indicated that the rate may not even consider a rate increase until the unemployment rate falls below 7% back in August, the Bank has given no further guidance.
The latest figures have the unemployment rate at 7.4% and some experts expect that it will fall below 7% this year. A few months ago the Bank predicted that unemployment would not reach 7% until 2016 which means an interest rate rise may happen sooner than we thought.
I don’t expect the Base rate to rise but like a good former boy scout I recommend that you ‘be prepared’. Do your sums and make sure you understand the consequences of any rise in interest rates for your personal and/or business finances.
In other news I have decided, on behalf of From Acorns Financial Planning Ltd, to sneak rock band names into random post titles. Status Quo have not made any comment that I know of regarding the Bank of England Base Rate.