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MPC holds interest rate at 0.5%

By Sarah Engle, Fri 9 Sep 2011 - Published in Loans

UK consumers looking to compare money may be interested to learn that interest rates have been held at 0.5 per cent.

The Monetary Policy Committee (MPC) announced that the interest rate is to remain the same, representing a static rate for over two years.

Savers and loans customers may be particularly affected by the news, following the Bank of England's decision, which also included an announcement that it would not be extending its quantitative easing programme.

According to earlier figures released by the bank, savers have missed out on some £43 billion because of the continuing low rates of interest.

Commenting on the decision, Ian McCafferty, chief economic advisor to the CBI business group, had a positive outlook for householders next year.

"We hope the UK economy will be on a firmer footing by next year, when a lower inflation rate will bring some relief for households," he said.

UK homeowners could be assisted if the government focused providing a lower cost of living, according to Jonathan Davis, economist and managing director of Jonathan Davis Wealth Management.