No base rate or quantitative easing change from MPC

08 July 2011 at 16:12

No base rate or quantitative easing change from MPC FSA-compliant independent financial advisers (IFAs) will now be able to guide clients on how to proceed after the Bank of England's Monetary Policy Committee (MPC) opted to keep the base rate of interest on hold.

It is the 28th consecutive month that the rate has remained at 0.5 per cent - a historical low.

Furthermore, the MPC opted not to invest in more quantitative easing.

Meanwhile, the Governing Council of the European Central Bank also announced a number of monetary policy decisions.

It revealed that the interest rate on the main refinancing operations of the Eurosystem will be increased by 25 basis points to 1.50 per cent from July 13th.

Rates on marginal lending facilities will see a similar increase to 2.25 per cent from the same date, while the rate on the deposit facility will be up 25 basis points to 0.75 per cent.

Such information could affect the advice given to customers by IFAs as they will likely be dishing out guidance based on the current market.

Posted by James Harrison ADNFCR-3006-ID-800616297-ADNFCR

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