Bank of England holds interest rates in January


Updated on 08 January 2015 | 1 Comment

There are no surprises at the first Monetary Policy Committee meeting of 2015.

The Bank of England’s Monetary Policy Committee (MPC) has kept interest rates on hold again at 0.5%.

The first monthly MPC meeting of the New Year produced a now-familiar outcome as the six-year anniversary of rates being cut to their record low of 0.5% approaches.

With low inflation, and oil prices continuing to fall, coupled with official figures showing GDP did not grow as fast as first thought, the bank is unlikely to move in the short term.

However, the Treasury’s latest compilation of independent forecasts shows the majority of experts expect interest rates to have risen by the end of this year.

[SPOTLIGHT]But any movement is unlikely to happen before May’s General Election.

What it means for savers and borrowers

The situation is not getting any better for long-suffering savers, with interest rates on high street savings accounts continuing to be cut and products withdrawn.

For mortgage borrowers, however, the reverse is true as interest rates are still tumbling as banks and building societies fight to grab borrowers.

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