The Bank of England Monetary Policy Committee (MPC) has announced its first interest rates decision of 2012 (at midday today, Thursday 12 January 2012). It should come as no surprise to anyone who has been keeping track of UK interest rates that the MPC voted once again to maintain the base rate at 0.5%.Indeed, there would appear to be no prospect of interest rates rising from their current record low of 0.5% (at which level they have been parked since March 2009) over the course of this year.
The latest analysis of interest rate rise predictions compiled by ThisIsMoney.co.uk reports "the prospect of low rates for years," and finds that the "range of predictions are 2013 to 2016."
The EEF, meanwhile, expects to see "a first rate rise in May 2013, with further gradual tightening throughout the year and beyond."
However, as XpertHR's January 2012 economic commentary notes, while interest rates are unlikely to budge in 2012, many commentators expect the MPC to extend its programme of quantitative easing later this year in order to boost economic growth - perhaps as soon as next month.
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