Base rate frozen; Asset purchase scheme increased

Interest rates have been kept on hold at 0.5% by the Bank of England today. The Bank also reveale...

Interest rates have been kept on hold at 0.5% by the Bank of England today. The Bank also revealed it will increase its asset purchase scheme to help ease funding pressures for bank lending. The Monetary Policy Committee (MPC) has opted to hold rates for the second month in a row as it uses other measures to help fight off the recession. Base rates have plummeted in recent months, from 5% in September 2008 to just 0.5% as the economy deteriorated. However, with little room left for further cuts, the MPC has begun using less traditional methods, such as quantitative easing, to boost ...