The Committee remains focussed on setting Bank Rate in order to meet the 2% inflation target.
It will then raise it further, to Bank rate plus 3.99%, on 1 October.
BBC: Bank of Ireland: Andrew Tyrie writes to FSA over rate rise
Buy-to-let customers will see their rate increased to Bank rate plus 4.49% on 1 May.
BBC: Bank of Ireland: Andrew Tyrie writes to FSA over rate rise
While the benchmark borrowing cost may have risen, the central bank left the bank rate unchanged at 6%.
It subsequently did this in two stages in early 2009, by leaving the SVRs stable while bank rate fell.
BBC: Bank of Scotland fined ?4.2m over Halifax mortgage errors
Current borrowers revert to a standard variable rate (SVR) of just 2% above bank rate, so currently paying 2.5%.
It has the power to change the interest on these home loans, even if the Bank rate does not move.
BBC: Bank of Ireland: Andrew Tyrie writes to FSA over rate rise
It sets Bank rate, which is the percentage it charges on loans it makes to banks and other financial institutions.
The bank rate is used to price medium- and long-term loans and is at its lowest level for three decades.
The rising rate of inflation comes at the same time as the Bank rate continues at a record low of 0.5%.
In order to change Bank rate or the amount of QE, a majority of the MPC's nine members needs to vote for it.
The Bank of England's Monetary Policy Committee cut the Bank rate by half a percentage point to 4.5% in a surprise move last Wednesday.
Kevin Mountford, of Moneysupermarket.com, said that the margin between the Bank rate and the interest paid by savings accounts was actually very high at present.
From 1 May, the bank will raise the mortgage rate for residential customers from, typically, the Bank of England rate plus 1.75%, to the Bank rate plus 2.49%.
BBC: Bank of Ireland: Andrew Tyrie writes to FSA over rate rise
As expected, the Bank of England today announced that the Official Bank Rate would remain unchanged at 0.5% and there would be additions to the Asset Purchase Facility.
But with the Bank rate unlikely or unable to fall further, new home loan demand is shifting back to fixed-rate deals, rather than mortgages which track the Bank rate.
"But Libor still remains high relative to the Bank rate and any improvement in credit market conditions will take time to feed through into the mortgage market, " he added.
At the same time, the RBI left the bank rate unchanged at 6%, maintaining the repo and reverse repo rates at the current levels of 4.75% and 3.25% respectively.
Existing borrowers have their SVR, of bank rate plus 0.5%, guaranteed for life but the new SVR will not have a cap or be linked explicitly to bank rate.
That is because mortgage interest costs have been at historically low and stable levels, thanks to the Bank of England pushing its bank rate down to 0.5% in early 2009.
Some disappear entirely, such as the one on the tribunal that investigated sensational allegations that a director of the Bank of England leaked a change in bank rate in 1957.
An implosion of the U.S. housing market, ironically overheated by a previous round of central-bank rate cuts, has slowed the world economy, sparking recessions in the United States and Europe.
Bank Rate Monitor currently cites a low of 1.49 percent for a 60-month new-car loan from a credit union in Chicago, with a high of 7.50 percent at a major bank.
As long as Bank rate is near zero and the Bank of England buys new gilts to replace the ones that mature, quantitative easing looks an awful lot like a "helicopter drop".
In its third-quarter credit policy review, the Reserve Bank of India left the bank rate at 6% and the key lending rate, which was cut as recently as Jan. 2, at 5.5%.
With the Bank of England's Bank rate still at a record low of just 0.5%, the expectation is that the official cost of borrowing can only go up when it is next changed.
Before the financial crisis in 2007 and 2008, Libor would have been, on average, about 0.15 percentage points above the Bank of England's base rate (also known as bank rate), Mr Boulger said.
Activity in the housing market will not do "terrific things" until the Bank rate rises, he says, predicting a 0.25 percentage point rise next August followed by an identical rise by the end of 2012.
Earlier, in October 2008, the bank had written to some Halifax customers, telling them it would raise the standard variable rate (SVR) 'cap' on their mortgages from 2% above the Bank Rate to 3% above it.
BBC: Bank of Scotland fined ?4.2m over Halifax mortgage errors
Even if pressure continues and the euro slips a bit farther, there seems to be a strong level of support near 1.4000, particularly as long as speculation surrounding a European Central Bank rate hike remains strong.
应用推荐