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Bank of England holds interest rates at 0.5%
The Bank of England has held interest rates at 0.5% following a succession of cuts in recent months. Since October last year the Bank has cut the rate six times, bringing it down from 5% to the current record low.
The Bank have tried to boost the flagging economy by cutting rates but the measures have been met with criticism from small firms who have not seen the cuts passed on in full by high street banks.
"The financial markets have anticipated today's decision to keep the official interest rate unchanged at 0.5%. With the rate now close to zero, further cuts are unlikely to produce benefits," said David Kern, chief economist at the British Chambers of Commerce.
The Bank has recently turned to other measures to try and stimulate the UK economy. It has introduced a measure called quantitative easing, where the bank buys assets such as government and corporate bonds to increase the supply of money in the economy.
Over £26bn has already been injected into the economy through this measure and the Bank has said that it will inject another £75bn into the economy in coming months, with another £75bn if required.
Post Date: April 9th, 2009
The Bank have tried to boost the flagging economy by cutting rates but the measures have been met with criticism from small firms who have not seen the cuts passed on in full by high street banks.
"The financial markets have anticipated today's decision to keep the official interest rate unchanged at 0.5%. With the rate now close to zero, further cuts are unlikely to produce benefits," said David Kern, chief economist at the British Chambers of Commerce.
The Bank has recently turned to other measures to try and stimulate the UK economy. It has introduced a measure called quantitative easing, where the bank buys assets such as government and corporate bonds to increase the supply of money in the economy.
Over £26bn has already been injected into the economy through this measure and the Bank has said that it will inject another £75bn into the economy in coming months, with another £75bn if required.
Post Date: April 9th, 2009
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