Interest rates and inflation

On 7 March, the Bank of England announced that interest rates would be kept on hold at 0.5%. Interest rates have been unchanged for forty-eight months (since March 2009). The next interest rate announcement will be on 4 April.

Inflation (measured by the change in the CPI) showed inflation at 2.7% in January 2013 for the fourth consecutive month and above the Bank of England’s 2% target for the thirty-eighth successive month. The next inflation figures (for February 2013) are due to be published on 19 March.