Bank Base Rate held again in November
MPC votes to keep Base Rate at 0.5%.
The Bank of England has elected to keep Bank Base Rate at 0.5% again this month.
The November meeting of the Monetary Policy Committee saw members vote to hold Bank Base Rate and maintain the size of its asset-buying quantitative easing (QE) scheme at £375 billion.
The Bank Base Rate has sat at its current record low since March 2009.
Most experts predict a Base Rate rise early next year.
With the rate of inflation declining – the Consumer Prices Index measurement dropped to 1.2% in the year to September, down from 1.5% in August – and the housing market appearing to slow down, there is now less pressure on the MPC to push rates up.
That said, the last few months have seen the members of the MPC split, with two voting for a 0.25% increase. They argued that keeping rates so low for too long risks “unbalancing the recovery”, according to the minutes of October’s meeting, adding that an early rise would help ensure subsequent base rate rises were only gradual.
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