No change in Bank of England interest rates

Posted: 05 Jun 2009 12:20:56 GMT

As expected by most financial commentators, the Bank of England interest rates remained at 0.5 per cent yesterday.

The Bank's monetary policy committee (MPC) revealed that the cost of borrowing will stay at its current record low level - this means a number of people with tracker mortgages will still be paying less each month on their home loans than they were last year.

It has now been four months since the MPC set the base rate at any other level, as the group moved interest rates down to 0.5 per cent in March this year.

UK economist at Capital Economics Vicky Redwood was one of experts who foresaw the decision. She said earlier this week that rates are unlikely to change in the next 12 months and may even stay at 0.5 percentage points for a year and a half.

In addition to revealing the cost of borrowing, the MPC also said it was continuing with its programme of asset purchases totalling £125 billion.

"The committee expects that the announced programme will take another two months to complete," it remarked. "The scale of the programme will be kept under review."


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