The Bank of England has maintained a 0.5% interest rate.
The surprise 1.1% jump in GDP did not sway the decision of the Monetary Policy Commission who have decided to keep the rate at the same level it has been since March of last year.
Experts have welcomed the bank’s decision and stated that economic stimulus was still needed by both businesses and consumers. Businesses are finding banks are still not lending and consumers aren’t brave enough to spend in the uncertain environment we find ourselves in.
Economic experts agree that the interest rate is unlikely to rise until the middle of next year especially with the full brunt of Government spending cuts still not being felt. Some experts have even predicted that the rate will not rise until at least the beginning of next year.
Many experts seem unwilling to put a specific prediction on when the rates will rise but warned that raising the interest rate too soon could lead the country back into recession.
Ultimately, the general expectation seems to be that we will not see a rise in rates until at least May of next year.
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