Bank of England base rate maintained at 0.5%
07 August 2009
The Bank of England (BOE) maintained the base rate of interest at 0.5 per cent yesterday (August 6th).
For the fifth month running the establishment opted to keep the key interest rate at the level and also continued with its policy of bond purchases.
The BOE announced that it will invest a further £50 billion into asset purchase which will leave the total amount invested in the initiative at £175 billion.
The announcement has been heralded by Mortgage Solutions as positive for homeowners.
In a statement, the company said: "The continually low Bank Rate has been a major factor in keeping a lot of families in their houses during this recession; the MPC [Monetary Policy Committee] will be torn between protecting homeowners and stimulating the savers whose cash is sorely needed by the banks.
"The MPC''s main remit is to manage inflation though, and borrowers on variable rates will have a better indication after the Inflation Report due mid-August of whether Bank rate will be hiked."
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