Bank Rate held once again

The Bank of England Monetary Policy Committee (MPC) has once again voted for no change in the Bank Rate.

This means the Bank Rate has been 0.5% for 39 consecutive months.

The MPC also voted to leave so-called Quantitative Easing (QE) at £325 billion.

“With a largely disappointing month behind us for the UK economy and with the EURO debacle continuing, there is little doubt that there will have been much debate around whether or not to kick off another round of Quantitative Easing,” said Ben Thompson, managing director, Legal & General Mortgage Club.

“However with inflation remaining stubbornly higher than expected it is unlikely the Bank will extend this until it is explicitly clear that it has to – this may even be as early as next month and we shall see.

“Closer to home there will be relief for the 8 million or so mortgage borrowers that now hold some sort of floating or variable mortgage rate. More than a million borrowers will have seen an increase in their Standard Variable Rates this year despite a record 39th consecutive month with Bank Base Rate unchanged at 0.5%. With households squeezed by depressed wages, increased costs of living and higher taxes, this decision to hold rates will feel like welcome relief.”