Interest Rates kept on hold

February 4, 2016

Policymakers at Bank of England have voted unanimously to keep interest rates on hold in February with forecasts now indicating it’s likely the UK’s record low interest rates will continue for another year. The Governor of the BoE, Mark Carney had suggested last summer that the issue of interest rate rises would come into sharper relief at the turn of the year leading many to speculate that the first interest rate rise could come as early as last month. However all nine members of the Bank’s Monetary Policy Committee decided to keep rates at 0.5pc this month. The Bank has cut its forecast for UK growth, inflation and wage rises. The “muted growth in world prices” driven by a fall in oil prices, slowing emerging economies and falling global growth have contributed to the Bank’s decision. Good news for home owners perhaps but savers’ outlook still bleak. Policy makers noted that the UK economy remained strong despite concerns for global growth.

 

Patricia Cronin

Associate Solicitor