Bank of England keeps interest rates on hold at record low of 0.1 per cent
The Bank of England has kept interest rates on hold at a record low of 0.1 per cent as the UK economy emerges slowly from its sharpest contraction on record.
The Bank’s Monetary Policy Committee also voted unanimously to keep its quantitative easing programme on hold at £745bn.
Analysts had predicted that the Bank would hold off making any changes to its economic stimulus measures until later in the year when the impact of coronavirus on jobs and businesses is more fully understood.
The Bank's announcement came after the US central bank said on Wednesday that it would keep rates at record lows until at least 2023 to help boost America's economy.
Adam Coles, of RBC Capital Markets said he expected the Bank of England to make further announcements to support the recovery in the autumn or winter.
“The initial recovery from the lows of the spring lockdown looks to be strong with consumer spending bouncing back particularly quickly but the outlook beyond this initial phase remains shrouded in uncertainty. ”
Low rates, and the expectation of more stimulus later in the year mean mortgage borrowers are likely to continue to find cheap deals available for some time.
