The Bank of England’s Monetary Policy Committee at its meeting today voted to maintain Bank Rate at 0.5%. The Committee also voted to maintain the stock of purchased assets financed by the issuance of central bank reserves at £375 billion, and so to reinvest the £4.35 billion of cash flows associated with the redemption of the January 2015 gilt held in the Asset Purchase Facility.
Commenting on today’s Monetary Policy Committee (MPC) interest rate decision, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:
“The MPC has made the right decision to keep interest rates and quantitative easing on hold. Any immediate interest rate rise would be unjustified, particularly given the eurozone has been struck by deflation and is experiencing low growth. Against this uncertain background, the MPC must make every effort to counter any threats of a slowdown.
“While many British businesses are eager to invest and export, as confirmed by our Quarterly Economic Survey, the recovery is still facing several challenges. Reassuring firms that they can expect a prolonged period of low interest rates will boost confidence and promote investment.”
To find out what this means for your business, we will be joined by Phil Eckersley, Agent for the Bank of England at our Business Leaders Lunch on 22nd January at Marriott Hanbury Manor.
For more information or to book onto this event click here