Bank Base Remains @ 0.5%

The Bank of England’s Monetary Policy Committee has decided to hold the base rate at 0.5% for the third month in a row.

The MPC has also voted to continue with its £125bn asset purchase programme, or quantitative easing.

Elsewhere, cuts in rates by Iceland, Denmark and Russia showed that, despite improving financial markets, central banks remain on the side of easier policy. Indeed, the ECB President, Trichet, stated that interest rates in Europe may not have yet reached a floor