Interest rates: Bank of England’s base rate likely to stay at 0.5% for some time

20th July 2011

According to the latest minutes of the monetary policy committee (MPC) concerns that declining consumer confidence and a lending drought will restrict growth, meaning that rates are likely to be kept on hold.

The Guardian reports that the MPC "judged that recent economic weakness had reduced the chance that interest rates would need to rise in the near term".

According to the minutes of the meeting the committee voted 7-2 to keep rates at 0.5%, as they did in June.

The last change in interest rates was in March 2009 when rates were reduced to 0.5 per cent, where they are now, from 1 per cent.

Like this? Read our blogger Shaun Richard's take on the Bank of England's decision.

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