News Column

UK interest rates remain at record low

August 8, 2014

THE Bank of England has kept interest rates at their record low of 0.5 per cent, giving Britain's economic recovery more time to build.

The BoE's Monetary Policy Committee, headed by Governor Mark Carney, issued no statement after its two-day meeting and investors will have to wait nearly two weeks to know if any members of the MPC voted in favour of raising rates for the first time in more than three years.

The BoE is widely expected to be the first central bank in a major developed economy to raise rates with economists suggesting the move is likely to happen later this year or early in 2015.

Some MPC members have said the time is coming to ease off on stimulus after unemployment tumbled to 6.5 per cent in the three months to May from 7.8 percent a year earlier.

But others on the MPC point to very slow growth in wages as a sign that the recovery in the labour market has further to run before it starts to push up inflation, which was below target at 1.9 per cent in June.


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Source: Herald, The (Scotland)


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