Base rate remains unchanged at 0.5%

The Bank of England`s Monetary Policy Committee has voted to keep its base rate at 0.5%, following nine consecutive cuts.

The Bank`s Governor, Mervyn King, had previously said it was unlikely that any further cuts would be made, following the decision to introduce quantitative easing into the economy to fight the recession.

The Bank has been subject to criticism from many analysts in recent months, who argued that base rate cuts were no longer effective and would disadvantage savers, who would suffer from record-low interest rates.

The decision to keep the base rate at 0.5% means that interest rates on loans and mortgages are unlikely to fall any further, and some lenders have started to raise their rates slightly.

A loans expert for Think Money said: "Interest rates are currently as low as they are likely to get in the foreseeable future, so anyone considering taking out a loan would do well to move quickly and try to obtain a competitive rate."

---

Think Money work with a panel of lenders to offer a range of loans. If you are thinking about getting a loan, contact one of our expert loan advisers today.

Tags: base rate, base rate cut, base rate cuts, interest rate, interest rates, mortgage, mortgage rates, loans rates, rates, Bank of England, saving, saving rates, low interest rates

Fees payable when continuing service is provided. Repaying debt over a longer period may increase the total amount to be repaid. Calls are recorded and are usually free from UK landlines. Mobile phone users may be charged and should check with their service provider. Cards are provided by third parties and are subject to eligibility, status and terms and conditions. Applicants must be UK residents aged 18 or over.