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09 Feb, 2012 - BOE holds interest rate at 0.5%, pumps £50bn into economy
BOE holds interest rate at 0.5%, pumps £50bn into economy
The Bank of England Monetary Policy Committee have today decided to maintain the UK benchmark interest rate at a record low of 0.5% and raised the target for bond purchases by £50 billion, to protect the economic recovery.
According to a statement in London today, the quantitative easing programme will now be boosted by £50 billion to £325 billion, suggesting that policy makers remain concerned that Europe’s debt troubles pose a significant risk to Britain. MPC officials also said that the UK growth outlook remains weak.
Following the announcement, the Pound is trading at added 0.30% against the USD, to $1.58650.
Notably, the European Central Bank also held its benchmark rate at 1% today, as forecast by most economists.
As many savers are still forced to endure low real interest rates, most cash investors are losing money in real terms. With the UK base interest rate still at 0.5%, cash investments are being virtually eroded. If you wish to learn more structured products that could potentially offer much more attractive returns even in a flat market, speak to a deVere Financial Adviser today.
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