Bank of England Base Rate Remains At All Time Low

The Bank of England has announced it will keep the base rate at 0.5%, following a vote of its Monetary Policy Committee (MPC), ending speculation of an increase.

In August, governor Mark Carney said he would not consider raising interest rates until the unemployment rate falls below 7%. And he has given no indication otherwise.

The Bank of England predicted it would be 2016 when unemployment falls below the 7% threshold set out by the governor. But with unemployment currently at 7.4%, some analysts suggest it could happen as early as this year.

Interest rates have remained at 0.5% since March 2007.

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