Bank of England holds base rate again

The Bank of England has again voted to hold the Base Rate at 0.5 per cent, marking 78 consecutive months without change.

In a vote of the MPC’s nine members, only one dissented, with Ian McCafferty arguing the base rate should be increased by 25 basis points.

McCafferty cited fears that an rising level of domestic costs might lead to inflation increasing beyond its target of 2 per cent.

The most recent figures from the Bank recorded inflation at 0.1 per cent.

The MPC also voted unanimously to maintain quantitative easing at £375bn.