Monday, March 1, 2010

Bank of England `voted unanimously` on base rate

The minutes from the latest Monetary Policy Committee (MPC) meeting show that rate-setters voted unanimously to keep the base rate at 0.5% for the twelfth consecutive month.
There had been some speculation as to whether the Bank of England might raise its base rate slightly, after inflation was revealed to have risen to 2.9% in December.
But it seems that other economic pressures led the MPC to leave the rate unchanged.
Many economists believe the base rate will remain at 0.5% for the duration of 2010.
However, with inflation rising further to 3.5% in January, the Bank may come under more pressure to raise the base rate in order to encourage lower spending levels.Read more

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