Interest rates on hold for the 20th month in a row

Financial News

In a widely expected move the Bank of England’s MPC (Monetary Policy Committee) has left interest rates on hold again.

Furthermore no new additional Quantitative Easing QE) has been announced.

The news comes on the day when the Halifax reported house prices fell by 0.1% in November.

Although the decision will not come as a surprise, with CPI (Consumer Price Index) at 3.2% the Bank will need to keep a careful eye on inflation in months to come and interest rate rises may be needed to steer inflation back towards the 2% target.

The news will be greeted positively by mortgage holders and businesses, however savers will continue to struggle to find a return that allows their savings to keep pace with inflation.