The bank of England’s rate-setters have voted 8-1 in favour of keeping interest rates at 0.5 per cent, keeping them below one per cent until the middle of 2016.
This is the 81st meeting in a row in which interest rates have been left unchanged at 0.5 per cent. Only Ian McCafferty, one of four Monetary Policy Committee (MPC) members, voted in favour of raising the rate.
Bank of England maintains #BankRate at 0.5% and the size of the Asset Purchase Programme at £375 billion…
— Bank of England (@bankofengland) December 10, 2015
“All members agree that, given the likely persistence of the headwinds weighing on the economy, when Bank Rate does begin to rise, it is expected to do so more gradually and to a lower level than in recent cycles,’’ said a Bank of England spokesperson.
“This guidance is an expectation, not a promise. The actual path Bank Rate will follow over the next few years will depend on the economic circumstance.”
Commenting on the Bank of England’s decision to leave interest rates on hold at 0.5%, John Allan, National chairman for the Federation of Small Businesses (FSB), said:
“With the inflation outlook remaining benign for the foreseeable future and coupled with weaker international growth, the Bank of England is right to keep interest rates on hold. The decision will help support small business confidence, and encourage them to invest in their businesses and create employment.”