The MPC maintains Bank Rate, April 2016 - PwC comments
Published at 15:44 PM on 14 April 2016
Commenting on the latest Bank Rate out today, Andrew Sentance, senior economic adviser at PwC, said:
"The MPC's decision to set its Bank Rate at 0.5% for the 86th meeting in a row comes as no surprise, and the forthcoming EU referendum has reinforced the Committee's caution. But the policy of keeping interest rates so low for so long is starting to have negative consequences - discouraging saving, encouraging a new wave of consumer borrowing and supporting the continued rise in house prices. The MPC needs a clearer strategy for returning borrowing costs and returns to savers to a more normal level. Delaying the first step in this direction is only likely to make it more difficult in the future as consumers and firms start to adapt their long-term financial plans to the current ultra-low level of interest rates. So when the EU referendum uncertainty is resolved, the MPC should review its current policy of holding interest rates at such a low level."
Ends.
For further information please contact Tilly Parke: [email protected] / +44 20 7804 8761
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