Bank of England base rate 'will not change'

Savers looking for the best savings rates will be interested to hear that experts believe that the Bank of England's base rate looks set to stay at 0.5 per cent when the Monetary Policy Committee MPC meet on November 4th.

Michael Baxter, editor of InvestmentandBusinessNews.co.uk, has predicted that the better than expected gross domestic product GDP growth of 0.8 percentage points will not reflect on the MPC's decision.

This will lead to a continuation of the current historically low interest rates, making it very difficult for savers to access rates that offer good returns on their money.

Mr Baxter said: "I don't think interest rates are going to change for a long time but I think we will see some more quantitative easing."

The news that the interest rates are likely to remain low will delight consumers who have a tracker mortgage as it means their mortgage rates will remain low.

Bank of England's base rate has been at the historical low level of o.5 per cent since March 2009.
 

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2010-11-02 12:55:16 © Moneyextra.com