The Bank of England’s Monetary Policy Committee (MPC) voted unanimously on Thursday to keep the standard base interest rate steady at the historic low of 0.5%. They also voted unanimously to maintain quantitative easing at £375 billion. These decisions did not come as a surprise to economists.

The Bank’s rate has been steady since March 2009.

The quarterly report on inflation was released on Thursday and the twelve month consumer price index (CPI) had increased to 0.5%. This is still far below the 2% target inflation rate set by the Bank. The inflation level is blamed on the current drags on both energy and food prices.

The minutes from the MPC meeting gave a warning that a UK vote for a Brexit could be detrimental to the economy, including the possibility of a technical recession. There would be an expectation of both growth and sterling declines and the jobless rate would increase.

A recession is defined as two consecutive quarters in which economic growth is negative.

Chancellor George Osborne remarked on the consequences of an exit from the EU. He said, “The Bank is saying that it would face a trade-off between stabilising inflation on one hand and stabilising output and employment on the other.

“So either families would face lower incomes because inflation would be higher, or the economy would be weaker with a hit to jobs and livelihoods. This is a lose-lose situation for Britain. Either way, we'd be poorer.”

Next month the MPC is expected to again leave the rate steady. Changes in the rate are not expected until at least July’s meeting, yet if you have been considering a loan, keep in mind that lenders are not dependent on the Bank to make changes before they change their own offers. Therefore the current remortgages and mortgages with their low rates are not guaranteed over the next few months.

Those considering a deal should be aware that some lenders are being creative in their attempts to get the attention of borrowers. Therefore it could be beneficial to shop around to find the best one.