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04/08/2011
Interest Rates Held At Historic Low
The interest rate has again been kept at the record low of 0.5% by the Bank of England's Monetary Policy Committee (MPC).
This comes as no surprise as most economists had anticipated that the rates would remain unchanged due to the subdued economy after new that GDP figures for the second quarter showed growth of just 0.2%.
The Bank also kept its programme of quantitative easing (QE) at £200bn.
"Unchanged interest rates were always a nailed-on certainty," Howard Archer, Chief UK economist at IHS Global Insight told the BBC today.
However, inflation in Britain has jumped to 4.5%, more than double the Bank's 2% target, but most of the Bank's policy-makers believe this will be temporary and are reluctant to put up rates at a time when the economy is flatlining and the government's austerity measures are just starting to kick in.
That prompted two MPC members to vote for higher interest rates, one for more stimulus through QE, and the rest for no change, but it is not known who as the Minutes of this month's meeting won't be published for a fortnight.
(BMcC/GK)
This comes as no surprise as most economists had anticipated that the rates would remain unchanged due to the subdued economy after new that GDP figures for the second quarter showed growth of just 0.2%.
The Bank also kept its programme of quantitative easing (QE) at £200bn.
"Unchanged interest rates were always a nailed-on certainty," Howard Archer, Chief UK economist at IHS Global Insight told the BBC today.
However, inflation in Britain has jumped to 4.5%, more than double the Bank's 2% target, but most of the Bank's policy-makers believe this will be temporary and are reluctant to put up rates at a time when the economy is flatlining and the government's austerity measures are just starting to kick in.
That prompted two MPC members to vote for higher interest rates, one for more stimulus through QE, and the rest for no change, but it is not known who as the Minutes of this month's meeting won't be published for a fortnight.
(BMcC/GK)
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09 November 2007
Interest Rates On Hold But Cut Likely Soon
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Interest Rates On Hold But Cut Likely Soon
Mounting pressure for a cut in the UK's interest rate hasn't produced one yet, but the good news for borrowers is that the Bank of England has at least kept interest rates on hold at 5.75% and indications are that a cut is due next time.
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