No change in base rate or QE

The Bank of England

There was no change made today by the bank of England MPC in either Bank Rate or the amount of Quantitative Easing (QE).

The base rate remains at 0.5%.

Meanwhile, the European Central Bank also voted to keep its base rate at 0.5%.

Ray Boulger of John Charcol said: “Any movement today in either Bank Rate or the size of the Quantitative Easing programme would have been a major shock.

“With 10 year gilt yields up nearly 30 basis points over the last month, and 5 year yields up even more, the last month has seen by far the biggest change in longer term interest rates since the steady downward trend that followed the announcement of the Funding for Lending scheme nearly a year ago.

“However, there has been a negligible movement in 3 month Libor and the market is reacting to a change of mood in the US market rather than any material change to UK fundamentals.”

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