MAINTAINING the bank rate at just 0.5% by the Bank of England today has been welcomed by the Trade Union Congress (TUC) while calling for wage rises for workers.
it’s no surprise the Bank has not raised rates
Hard-pressed SMEs, too, will be breathing a sigh of relief that the bank’s Monetary Policy Committee voted to maintain the historically low base interest rate.
The committee also voted to maintain the stock of purchased assets financed by the issuance of central bank reserves at £375Bn to reinvest the £4.35Bn of cash flows associated with the redemption of the January 2015 gilt held in the Asset Purchase Facility.
Responding to the announcement, TUC general secretary Frances O’Grady said: “With inflation at just 1%, signs that economic growth is slowing and deflation in the Eurozone, it’s no surprise the Bank has not raised rates.
“It is wage rises that we need, not an interest rate rise. As well as reversing the unprecedented decline in living standards, wage rises will help head off the growing threat of deflation.”
