Investment News – Base Interest Rate And Money Supply On Hold – Sky News Online – 14 Jan 2011 – by James Sillars
The base rate of interest has been kept on hold for a 22nd consecutive month by the Bank Of England’s Monetary Policy Committee.
It means the record low bank rate of 0.5% is maintained.
There was also confirmation that there would be no extension of quantitative easing to boost money supply.
The decision not to raise rates was expected, despite soaring inflation and commodity prices which are set to feed into the market place.
The Government’s target measure of inflation – the consumer prices index – hit 3.3% in November, driven by the rising cost of food, clothes and oil.
Most members of the Monetary Policy Committee (MPC) are banking on these pressures being a problem in only the short-term.