Base Rate to Stay at 0.5%

 

The Bank of England’s Monetary Policy Committee has once again voted to keep base rate at 0.5 per cent.

Minutes from the meeting on the 13th January 2016 show just one member, Ian McCafferty, voted for a rise. He believed rates should rise 0.5 per cent because “the path of domestic costs was more likely to lead to inflation exceeding the target in the medium term than was embodied in the Committee’s collective November projections”.

The minutes reiterate that when rates rise they will do so slowly, due to the “likely persistence of headwinds weighing on the economy”.

The committee voted unanimously to maintain its quantitative easing programme at £375bn.

Article from Mortgage Strategy