Interest Rates Left Unchanged By Bank Of England

02 Aug 2013

The Monetary Policy Committee (MPC) of Bank of England has left the interest rates at 0.5 per cent. The key borrowing rate has been left that way since March 2009. According to MPC, the £375 billion of monetary stimulus being provided through its Quantitative Easing Programme (QE) would see no changes either. Coinciding with the release of the Bank’s Quarterly Inflation Report next week, the MPC will announce whether it will adopt “forward guidance” policy that gives clues into future moves and helps investors in planning ahead.

According to last week’s official figures, the economy was continuing to improve. The British Chambers of Commerce’s chief economist David Kern welcomed the Bank’s announcement saying, the Monetary Policy Committee’s decision to hold interest and quantitative easing was the right decision. The minutes of the recent Monetary Policy Committee meeting suggest that the QE is not likely to be increased anytime soon and the low interest rates will be maintained for a long period of time. This will provide a stable and steady environment for businesses. Right after the announcement at noon, the pound was seen half a cent higher than the dollar at $1.524 and even rose against the euro.

This is definitely stellar news for people interested in investing in the United Kingdom. For information on investing or migrating to UK  Follow us on FaceBook