Interest rates held again in October
The Bank of England has kept rates on hold at 0.5% again this month.
The Bank of England has kept interest rates on hold at their record low of 0.5% again this month.
The October meeting of the Monetary Policy Committee voted to hold rates and also keep the size of the asset-buying quantitative easing (QE) scheme at £375 billion.
A low annual inflation rate of 1.5% has eased the pressure on the MPC to raise rates. There are also signs both the economy and house prices are slowing.
Most experts are still pencilling in the first rate rise for the first quarter of next year, although a few expect it to come in November to coincide with the latest quarterly Inflation Report.
Two members of the MPC voted for a 0.25% increase at both August’s and September’s meetings.
And Bank of England Governor Mark Carney has said the time for a rate rise is getting closer, although he wouldn’t be drawn on when that might be.
As ever, the minutes of the October meeting will be scrutinised for signs of possible rate movement.
Meanwhile, mortgage rates continue to fall as lenders compete to attract people looking for a fixed rate before interest rates rise.
Compare the latest mortgage rates
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Oh for goodness sake Mr Carney - isn't it about time you gave a thought to the savers. When you crossed the pond last year I thought it just possible that a new face might inject some common sense - but whatever afflicted your predecessor, is now clearly afflicting you! That affliction is simply "whatever happens we must help the debtors, the profligate, the spendthrifts - the savers, the sensible, the self-sufficient can go to hell in a handcart - for they must be sacrificed on the altar of fiscal propriety". I know today's mortgage holders are fearful of a rise, but where was the BOE's policy when I was being charged 17% back in the 80s? I don't recall any sympathy by the then government or the BOE - if I didn't pay I was out on my ear!
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Low inflation???? Do these idiots go shopping? Even the politicians have no idea how much a family's food bill is. So the destruction goes on. Massive borrowing continues to support 0.5% and the self disciplined, prudent saver gets robbed. How anyone can vote Tory again is beyond me. Mind you, they will not raise interest rates voluntarily. They can't. The banks will go bust. House prices will collapse and huge numbers of repossessions. Yet they cannot leave them low as the debt bill spirals and the economic destruction continues. They have got themselves between a rock and a hard place. The situation will be forced, and I suppose that means a big increase in interest rates when the borrowing runs-out. I watch this with interest. May take another 3 to 5 years (when the IMF runs out of money), but it will happen.
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09 October 2014