Interest rates to stay at 0.5%

The Bank of England has opted to keep the base rate at 0.5 per cent, a decision that could have implications for those looking to clear debt.

Following this month’s meeting of the Monetary Policy Committee, the figure will remain at its present level.

This breaks the trend of the last few months, which has seen the rate cut repeatedly by the Bank as it attempted to combat the credit crunch and boost the finances of borrowers.

The financial institution announced that it intends to continue with its proposed ££75 million asset purchase plan, designed to inject cash into the financial markets.

James Caldwell, the director of Fairinvestment.co.uk, noted that the latest move was “not surprising”.

He went on to explain: “Interest rates are as low as they can be without dropping to near zero, which could have detrimental consequences on confidence and lending.”

By Jamie Price