Bank of England holds interest rates again

Rates held at record low and no more money pumped into the economy for now.

The Bank of England’s Monetary Policy Committee (MPC) has voted to keep interest rates on hold at their record low of 0.5% for the 35th consecutive month.

As widely predicted, the MPC also held fire on more quantitative easing. The continued uncertainty surrounding both the UK and world economies will have been at the forefront of the committee members' minds.

Many experts believe the Bank is also waiting for its own inflation report and to see the results of the last round of money printing before considering rolling out any more quantitative easing.

Most forecasts say interest rates will remain on hold for the whole of this year.

What it means for you

If you have a mortgage that tracks the Bank of England base rate, such as a tracker or variable rate, you’ll carry on paying the same repayments.

For savers, the news continues to be grim. Inflation continues to erode the value of many of our savings pots, particularly if you don’t want to lock away your savings for a period of time.

If you're happy to lock your cash away for a year or more, take a look at our round-up of the top-paying fixed-rate savings accounts.

Also today: MPs blame injury claims for high insurance premiums | British Gas announces 5% cut in electricity prices

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