Bank of England expected to hold base rate at 0.5%

It is believed that the bank base rate that currently stands at an all time low of 0.5% will remain at that level for the time being. The Bank of England is expected to make that announcement in its monthly monetary policy decision later today.

This will mean that the base rate will have been at an all time low for a full year, to try and boost growth in the economy. It is believed that the Bank’s Monetary Policy Committee will take a very cautious decision, due to the fact that in February news of Britain was out of recession.

The MPC are also likely to announce quantitative easing programme will remain on hold. The programme pumped in over 200bn into the economy. The UK economy grew 0.3% in the last three months. Because of the end of stamp duty tax holiday and the icy conditions led to a fall in house prices.

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