Interest rates have been frozen for yet another month following the meeting of the Bank of England's Monetary Policy Committee (MPC), the base rate will remain at its historic low of 0.5 per cent for a 16th consecutive month as the Bank attempts to support a full economic recovery.In addition, no change was made to the MPC's £200 billion quantitative easing programme, halted in February, at the two-day meeting. Both decisions were widely expected in light of the government's austerity measures announced in George Osborne's emergency Budget last month.
APA has warned that the severe but necessary public sector cuts risk plunging the UK back into recession and recommends extreme caution. With this danger in mind, the Bank of England is not expected to increase its base rate before 2011. The European Central Bank has chosen to keep interest rates on hold at one per cent.
Gareth said, “We are all going to be pushing the car for a long time before the engine starts but I am confident it will. After that we will have to nurse it gently for a while and hope normal running resumes in the near future.” He apologised for his car analogy and blamed it on the mix of stunning weather and the British Grand Prix.
APA
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