Low interest rates likely for medium-long term - experts

Most analysts were unsurprised by the MPC's vote to keep interest rates at 0.5% and continue its programme of quantative easing (QE), which is on target to end in February. The Bank has now held rates for 11 consecutive months. Azad Zangana, European economist at Schroders, says: "The MPC remains frozen in wait-and-see mode by voting to hold interest rates today at 0.5%. "Inflation is expected to rise sharply over the coming months as energy price base effects from last year unwind and the impact of VAT reinstated at 17.5% feeds through. "Nevertheless, we agree with the Bank of ...