Interest rates enter sixth year at 0.5%
The Bank of England has left rates on hold again, making it six years at their record low.
The Bank of England has held interest rates at their record low of 0.5% again in March – meaning it’s now been six years of record-low rates.
This month’s decision comes as no surprise following record-low inflation figures for January.
The minutes of last month’s rate-setting Monetary Policy Committee (MPC) meeting showed all nine committee members were agreed that rates should stay low.
This followed on from some dissent in previous months when two MPC members pushed for a small rate rise.
There has even been discussion that the MPC could cut rates further, but with inflation likely to rise in the mid-term this is unlikely.
The first move is still far more likely to be upwards, with the latest forecasts predicting early next year.
What this means for your money
Today’s decision is good news for mortgage borrowers whose mortgages track the Bank of England Base Rate.
It’s not good news for savers though, particularly with the end of the tax year approaching, which means it’s the last chance to use up ISA allowances.
However, Cash ISA rates have improved slightly in the past couple of weeks, although they are still at very low levels overall.
If you’re looking for somewhere to stash your cash, you might want to look at the likes of current accounts and peer-to-peer lending. We look at the top rates available in Where to earn most interest on your cash.
More on household money:
Average income is now back to pre-recession levels
Better ways to use your money than lottery tickets and scratchcards
General Election: what the party promises mean for your money
Comments
Be the first to comment
Do you want to comment on this article? You need to be signed in for this feature