07-03-2008

MPC leaves rates unchanged

News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.

The Bank of England's monetary policy committee (MPC) yesterday (March 6th) announced its decision to leave interest rates on hold.

In a move that was widely expected, the MPC confirmed its decision to leave interest rates at 5.25 per cent for a further month. Yesterday's judgement contrasts with February's decision to reduce rates from 5.5 per cent. A further interest rate announcement will take place on April 10th.

"The Bank of England predictably left base rates on hold today," said a representative from the Royal Institution of Chartered Surveyors (RICS). "The RICS believes that this was the appropriate decision following the lowering in rates in both December and February."

In the eurozone, the European Central Bank (ECB) also announced that interest rates would remain unchanged at four per cent for another month. Established in 1998, the current president of the ECB is Jean-Claude Trichet.

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