BREAKING: Bank of England HOLDS interest rates at 0.25 per cent

0

All nine associates of the Monetary Policy Committee (MPC) voted to maintain rates, after aftermost month cutting them for the first time since 2009.

The Bank’s money-printing television play was also held at its current level of £435billion.

Policymakers bid a number of banks had dropped their Standard Variable Rate and Tracker mortgage tolls, as a result of last month’s cut — but also acknowledged that savings ces had also fallen in August.

The FTSE 100 was trading around 0.3 per cent loaded after the announcement.

The Bank has not ruled out cutting interest rates supplemental, which would cause further misery for savers.

Howvever, during the MPC’s fashionable meeting it was admitted that UK economic data had been «stronger-than-expected».

Bank Governor Nick Carney was hauled before MPs last week to answer claims the MPC dissembled cut rates too soon, especially in light of figures that has showed the succinctness has held up well after the referendum result.

However, the chief stressed the bank had followed the right course of action.

Some experts are now gravid another controversial cut to take rates to 0.1 per cent in November.

Tom Stevenson, investment supervisor for Personal Investing at Fidelity International, said: “The Bank of England has s red UK savers another stiff blow this month by choosing to maintain interest rates at 0.25 per cent attending last month’s cut.

“If it does cut close to zero later this year it on have very few monetary policy bullets left to fire if the UK control slips into recession.»

More savers are expected to turn to ordaining amid ultra low interest rates.

Mr Stevenson added: «With scrutiny rates remaining at record lows, UK savers are unlikely to achieve a considerate return by staying in cash.

«To stand any chance of generating a real advent they’ll need to look further up the risk spectrum, investing in a little riskier bonds issued by com nies rather than the government or impressive into stocks and shares.»

Fidelity calculations show that £15,000 ventured in the FTSE All Share index 20 years ago would now be worth £55,105.

In resemblance, £15,000 into the average UK savings account over the same days, would now be worth only £20,100.

Leave a Reply

Your email address will not be published. Required fields are marked *