No change in interest rates for June
June 20, 2009
Following the Monetary Policy Committee meeting, which was held earlier this week, the Bank of England has announced that the UK base rate is to be kept on hold for yet another month.
This is the third month that the base rate will have been kept steady, at 0.5 percent, which is still the lowest that the base rate has ever been in the history of the Bank of England, which spans over three hundred years.
After the May MPC meeting the Bank of England announced that it was pumping an increased amount of money into the economy through quantitative easing, and having already ploughed £75 billion into the economy through this process was planning to invest another £50 billion.
However, there was no such announcement following the June meeting, and as yet the central bank has announced n o further measures aimed at stimulating the economy.
Industry groups are calling on the government to increase its injection of money into the economy, despite the fact that it has now already committed £125 billion worth of funding in total through quantitative easing.
However, many officials think that more cash in needed, and pressure is being put onto the government. There are other industry officials that think the economy will recover faster than had been expected given recently released reports and data. However, even the Bank of England indicated in its recent Inflation Report that the future of the economy was still uncertain.
An official from the British Chambers of Commerce stated: “The positive mood in the financial markets should not lull anyone into a false sense of security. Tackling the recession must remain the priority, especially with unemployment rising and firms continuing to slash investment.”
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