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UK interest rates will stay unchanged at 0.5% after the Bank of England rate-setters voted 8-1 for no change.

Ian McCafferty, who is one of four external members of the Monetary Policy Committee (MPC), was outvoted by other members but has voted for a quarter-point rise at the past four meetings.

The nine rate-setters on the MPC have predicted that inflation would stay below 1% until the second half of 2016 and will be slightly positive in November despite it standing at -0.1% in October, as measured by the Consumer Prices Index (CPI).

The European Central Bank worked towards boosting the Eurozone economy last week when it cut its overnight deposit rate and extended its €60 billion stimulus programme by six months.

The current members of the MPC have not been part of the committee when rates have been previously raised or cut but the Federal Reserve in the US is expected to raise rates at its policy meeting some time next week.

Posted by: In: Economy 07 Aug 2014 Comments: 0 Tags: , ,

The Bank of England has today announced that they are to hold UK interest rates at their historically low rate of 0.5% for another month. This is great news for businesses in the area but not so for savers who have taken the brunt of low interest rates over the last few years.

As these are the lowest interest rates seen for a very long time, people should expect a rise at some point in the near future. The Bank of England has said that any rate rises will be gradual.

As with anything like this we’ll have to wait and see and will report on it as and when it happens, however the general feeling is that that they will be going up at some point in 2014.