Base rate and QE changes 'unlikely'
It is unlikely that the Bank of England will opt to alter interest rates or its quantitative easing (QE) programme in its announcement later today (March 4th).
This is according to UK economist at Capital Economics Vicky Redwood, who said that it will be some time before the Monetary Policy Committee decides to change the base rate.
’We believe that [it] will remain at this level at least for the rest of this year and probably most of next year too,’ she remarked, something that may interest those looking to invest their
private wealth.
Ms Redwood also noted that quantitative easing will not be altered for at least ’another three to six months’, as the Bank is likely to wait until inflation has peaked before assessing the strength of the economic recovery.
Once this has occurred, she remarked, there is a chance that new measures to aid the economy will be introduced.
The base rate is currently set at 0.5 per cent, while so far £200 billion has been spent on the QE programme, which was put on hold last month.
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