No change in Bank Rate or QE

Published on

The Bank of England

The Bank of England’s Monetary Policy Committee (MPC) has voted to keep the Bank Rate at 0.50%.

It has also left the quantitative easing (QE) programme unchanged.

Andrew McPhillips, chief economist at Yorkshire Building Society, said: “The MPC remains in ‘wait-and-see’ mode for a number of reasons.

“Perhaps most importantly, we are still awaiting announcements from Europe’s political leaders on how they intend to resolve the crisis currently crippling the area.

“Bearing in mind their decision – such as the exit of one or more member states from the Euro – could prove extremely disruptive to the UK economy, the MPC will undoubtedly want to keep any potential stimulus plans in reserve to ensure this response has maximum impact.

“While UK economic data continues to disappoint, even taking into account the recent upwards revision to GDP for the second quarter of 2012, it has been affected by the poor weather and the extra bank holiday for the Jubilee. Waiting for these distortions and those from the Olympics to drop out of the data will allow the Bank to make a better assessment of the state of the UK economy.

“In addition to this, the Funding for Lending scheme is still in its early stages and the MPC has been clear that it intends to review its initial effectiveness before making any further announcements.

“My view remains that there will be no changes to the Base Rate or QE for the remainder of the year.”

Latest POLL

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Mortgage advisers failing over-50s on later life lending, Key warns

Mortgage advisers are not doing enough to support over-50s with later life lending options,...

Kuflink announces leadership change as CEO steps down

Kuflink has announced that CEO Narinder Khattoare will step down, marking the end of...

Norton Home Loans partners extends access to specialist solutions

Norton Home Loans has partnered with broker London & Country (L&C) Mortgages to widen...

Hinckley & Rugby for Intermediaries expands remortgage service with PEXA

Hinckley & Rugby for Intermediaries is expanding its partnership with PEXA and Optima Legal,...

Other news

Mortgage advisers failing over-50s on later life lending, Key warns

Mortgage advisers are not doing enough to support over-50s with later life lending options,...

Kuflink announces leadership change as CEO steps down

Kuflink has announced that CEO Narinder Khattoare will step down, marking the end of...

Norton Home Loans partners extends access to specialist solutions

Norton Home Loans has partnered with broker London & Country (L&C) Mortgages to widen...