Corporate banks approve ongoing 0.5% base rate?

Corporate banks may approve of the revelation the base rate is to stay at 0.5 per cent for another month.

The Bank of England's Monetary Policy Committee (MPC) today (October 7th) voted to keep the national rates at the same level, where it has remained since it was cut by half a percentage point in March 2009.

For corporate banks, this means demand for credit may be supported as the cost of borrowing remains relatively affordable.

However, poor returns as a result of low interest rates may mean fewer businesses or individuals with private wealth choose to place assets in traditional savings vehicles, which could affect trade for both corporate and private banks.

Earlier in the year Andrew Sentance become the sole member of the MPC to vote for a rise in the base rate, arguing inflation would continue unchecked if the level was maintained at such an artificially depressed point.  ADNFCR-2318-ID-800103948-ADNFCR