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Interest rates held at 0.5%

Bank also opts against extending its quantitative easing scheme

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14 November 2011

Interest rates held at 0.5%”

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UK credit cardholders have been boosted by the news that interest rates have been yet again held at 0.5 per cent.

The Bank of England's Monetary Policy Committee (MPC) has decided against increasing the base rate, which has been frozen at its current level since March 2009.

Furthermore, the Bank announced that it would not inject any more money into the economy through its quantitative easing (QE) scheme. Last month, a further £75 billion was added to the scheme - taking the total to £275 billion.

Lee Hopley, chief economist at EEF manufacturers' organisation, was unsurprised at the decision following the recent extension to the QE programme.

"However, ahead of the November inflation report the committee is likely to be looking at a much weaker set of growth forecasts, where the potential risks to the economy have increased significantly," he told BBC News.

"With growing turbulence in Europe, the possibility of further action can't be taken off the table."

Credit card users will hope that interest rates remain at 0.5 per cent for the foreseeable future, as they currently benefit from low repayment rates.

Posted by Sarah Nyman

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Credit Cards	0% Balance Transfers	0% Purchases	APR Representative (Variable)
	Tesco ClubCard Credit Card
	9 months	15 months	16.9^%
16.9% APR representative (variable). Based on a credit limit of 1200 and purchase rate 16.9% p.a(variable).
	Virgin Credit Card
	20 months	3 months	16.8^%
16.8% APR representative (variable). Based on a credit limit of 1200 and purchase rate 16.8% p.a(variable).
	Barclaycard Platinum with BT
	22 months	3 months	17.5^%
17.5% APR representative (variable). Based on a credit limit of 1200 and purchase rate 17.5% p.a(variable).
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