We can all breathe a sigh of relief for now as the Bank of England once again announced last week to keep interest rates at 0.5% for the 19th month in a row.
While savers will not be best pleased, those with mortgages and loans – which includes a large chunk of the SME (small and medium size enterprise) community – will certainly applaud this welcome news.
And the decision will come as no surprise to the business world and economists who have predicted that the rate will remain at 0.5% until at least next year. A necessary move perhaps, as while the UK is slowly dragging itself out of the recession – the economy grew by 1.2% in the second quarter – there is still talk that we’re not out of the woods just yet…
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