BBR held at 0.5% 10.06.2010

Author: David Whittaker Posted on: 13 June 2010

The announcement that the MPC has aheld Base Rate at 0.5% was no real surprise nor was their second statement that they have no plans to add to the £200Bn of Quantitative Easing programme already completed in Q1. Some would argue that even if they did wish to extend the programme there is no money with which to do it !!!

Inflation has been above target for three months in a row which heightens speculation that rates will increase at the end of the year. RBS are sticking with their view of Base Rate moving up by 0.5% in Q1 next year but, oh boy, you should see how much they expect it to move thereafter. Fixed rates could start to look very attractive in the coming weeks.

However we still face major global and economic uncertainties and predicting future rates is not a safe game...... we'll try to point you in the direction of source data to help your deicisions.

Author: David Whittaker