Bank of England `unanimous in holding base rate`
18 June 2009
Minutes from the Bank of England`s Monetary Policy Committee (MPC) meeting, held earlier this month, have shown that all nine members agreed to hold the base rate at 0.5%.
This was the third consecutive month that the MPC decided to keep the rate at 0.5% - the lowest in the Bank of England`s 315-year history.
The base rate decision, along with the Bank of England`s `quantitative easing` scheme, is part of a long-term strategy to tackle the recession.
However, some analysts have criticised the Bank`s decision to set the base rate so low, arguing that it disadvantaged savers by reducing returns on their deposits.
The minutes of the meeting also revealed that the MPC felt the risk of a `continued sharp contraction` in the economy had lessened.
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