Bank of England Maintains Rate at 0.5%

The Bank of England’s Monetary Policy Committee (MPC) has voted to keep interest rates on hold at 0.5%.

It has kept the key borrowing rate at that level since March 2009.

The MPC also said it would make no change to the £375bn of monetary stimulus it is providing through its quantitative easing (QE) programme.

Last month, BoE governor Mark Carney said the central bank would not consider raising interest rates until the unemployment rate fell below 7%.

That announcement is part of Mr Carney’s policy of giving forward guidance.

The idea is to create more certainty for businesses and individuals about the course of interest rates, which may encourage borrowing and investment.

He forecast that it would take about three years for unemployment to reach his target.

via BBC

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