The last time the Bank Rate
was changed was a reduction of 0.5% in March 2009 and the last change in the size of the Asset Purchase Programme was in July 2012 when it was increased by GBP50bn.
"Any future increases in Bank Rate
are expected to be at a gradual pace and to a limited extent.
To understand why the MPC decided to raise Bank Rate
, it is important to remember that Parliament has given the MPC responsibility to keep the rate of inflation - the pace of increase in prices of goods and services - at 2% a year.
To that we can add a market clearing level of the Wicksellian natural rate of around 2-3 per cent and that gives us an expected level of Bank Rate
in the region of 4-5 per cent.
Had she been quoted the bank rate
of PS1 to [euro]1.16, her purchase would have been [euro]87.
"But once I am convinced, I can see Bank Rate
rising more quickly than the path implied by the market curve at the time of the last Inflation Report."
Explaining her view about interest rates, she said: "I think it is interesting to note that surveys of economic forecasters - a more direct measure of the expected future path of interest rates - show expectations for a faster pace of increases in Bank Rate
The previous change in Bank Rate
was a reduction of 0.5 percentage points to 0.5% on 5 March 2009.
aACoeAccordingly, the Monetary Policy Committee decided to reduce the Bank Rate
by half a percent to 7.5 percent.aACA[yen] BoB said assumptions on both the domestic and external economic outlook, as well as the inflation forecast, suggest that reducing the bank rate
is consistent with maintaining inflation within the bankaACAOs 3 aACAo 6 percent objective range in the medium term.
Adding Savanna to the SelectCDrates.com team will further enhance the timely and practical bank rate
data that is presented through their flag ship web site, www.selectcdrates.com.
I AM sure other readers will have noted and thought about the new benchmark for determining the bank rate
as the level of unemployment rather than as before the rate of inflation.
NEW DELHI -- At a time when interest rates are rising, some of the country's largest banks are trying to block a move to deregulate savings bank rate
, fearing their cost would rise beyond 4% in a free market regime.