The Bank of England’s Monetary Policy Committee (MPC) has today announced interest rates will remain at 0.5%, in an attempt to sustain the growth of our economy.
The news will come as a disappointment to savers, but is not unexpected; with inflation remaining steady at a one-year low, wage growth slowing, and the value of sterling remaining uncertain, an increase was unlikely.
The Bank of England is clearly waiting for the economy to improve before doing so. Q1 delivered disappointing economic growth results for the UK, however the outlook is improving, and unemployment is at its lowest since 1975. This growing workforce has the ability to increase productivity, therefore boosting the economy and its growth.
Although low interest rates make saving less rewarding, it makes borrowing money cheaper, providing excellent opportunities for individuals and businesses hoping to invest, whether that be in a property, business or resources.
If you would like to speak with one of our experts regarding interest rates, please get in touch.
