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05/06/2008
Interest Rates Remain At 5%
Interest rates are to remain the same in the UK at 5% following a meeting of the Monetary Policy Committee (MPC).
The Bank of England committee sets an interest rate it judges will enable the inflation target to be met.
The decision not to change the interest rate has been expected.
Financial experts believe that the MPC needs to wait and see whether higher food and fuel prices lead to higher salaries or decreased spending in other areas before changing rates.
Rising food and fuel prices pushed inflation to 3% in April which is above the government's target of 2%.
Usually, if inflation rises above 3% the Bank of England governor, Mervyn King must give an explanation to the Chancellor, Alistair Darling.
Ian Kernohan, an economist at Royal Asset Management say that "times have changed" and "the MPC actually wants the economy to slow down quite a lot in order to contain the stubbornly high inflation".
A report by the Organisation for Economic Co-Operation and Development (OECD) said: "Much higher food and energy prices are leading to demands for offsetting policy action. Such demands ought to be resisted. Only by allowing the right price signals to affect demand and supply can better balance be established in these markets.
"Concerns for living standards among those on low incomes are better addressed through an appropriately designed tax and social transfer system."
The OECD has predicted that UK growth would slow to 1.8% this year and to 1.4% next year.
The credit crunch is continuing to have a negative impact. Recently released figures from the Halifax have shown a 2.4% hall in house prices during May.
Mr King will make a major policy speech next Tuesday.
The previous change in Bank Rate was a reduction of 0.25 percentage points to 5% on 10 April 2008.
(DS)
The Bank of England committee sets an interest rate it judges will enable the inflation target to be met.
The decision not to change the interest rate has been expected.
Financial experts believe that the MPC needs to wait and see whether higher food and fuel prices lead to higher salaries or decreased spending in other areas before changing rates.
Rising food and fuel prices pushed inflation to 3% in April which is above the government's target of 2%.
Usually, if inflation rises above 3% the Bank of England governor, Mervyn King must give an explanation to the Chancellor, Alistair Darling.
Ian Kernohan, an economist at Royal Asset Management say that "times have changed" and "the MPC actually wants the economy to slow down quite a lot in order to contain the stubbornly high inflation".
A report by the Organisation for Economic Co-Operation and Development (OECD) said: "Much higher food and energy prices are leading to demands for offsetting policy action. Such demands ought to be resisted. Only by allowing the right price signals to affect demand and supply can better balance be established in these markets.
"Concerns for living standards among those on low incomes are better addressed through an appropriately designed tax and social transfer system."
The OECD has predicted that UK growth would slow to 1.8% this year and to 1.4% next year.
The credit crunch is continuing to have a negative impact. Recently released figures from the Halifax have shown a 2.4% hall in house prices during May.
Mr King will make a major policy speech next Tuesday.
The previous change in Bank Rate was a reduction of 0.25 percentage points to 5% on 10 April 2008.
(DS)
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05 April 2007
Interest rates kept on hold
The Bank of England has voted to keep interest rates at 5.25% for the second month in a row. The decision is good news for borrowers, as there had been fears that interest rates would be increased to 5.5% this month. If this had happened, homeowners with an average £100,000 mortgage would have faced a rise of £16 per month on their repayments.
Interest rates kept on hold
The Bank of England has voted to keep interest rates at 5.25% for the second month in a row. The decision is good news for borrowers, as there had been fears that interest rates would be increased to 5.5% this month. If this had happened, homeowners with an average £100,000 mortgage would have faced a rise of £16 per month on their repayments.
12 April 2005
UK house prices fall, report shows
UK house prices fell by 0.5% between January and February, figures from the Office of the Deputy Prime Minister (ODPM) have shown. The drop in prices, which saw the average house price in the UK in February fall to £179,491 from £180,465 in January, is smaller than the 1% fall reported in the same period last year.
UK house prices fall, report shows
UK house prices fell by 0.5% between January and February, figures from the Office of the Deputy Prime Minister (ODPM) have shown. The drop in prices, which saw the average house price in the UK in February fall to £179,491 from £180,465 in January, is smaller than the 1% fall reported in the same period last year.
07 August 2003
UK interest rates stick at 3.5%
The Bank of England has announced that interest rates will remain at their current level of 3.5%. Business leaders and the CBI had been calling for the rate to be lowered further due to depressed business confidence in the UK. But weighing up the factors the Bank’s Monetary Policy Committee announced that the rate would hold at 3.5%.
UK interest rates stick at 3.5%
The Bank of England has announced that interest rates will remain at their current level of 3.5%. Business leaders and the CBI had been calling for the rate to be lowered further due to depressed business confidence in the UK. But weighing up the factors the Bank’s Monetary Policy Committee announced that the rate would hold at 3.5%.
09 September 2010
UK Interest Rates Remain On Hold At 0.5%
The Bank of England Monetary Policy Committee (MPC) has kept interest rates on hold at 0.5% for the 18th month in a row. The decision had been expected, although there have been calls for a rise in order to curb inflation. The MPC also continued with the Bank's £200 billion quantitative easing programme. The UK economy grew by 1.
UK Interest Rates Remain On Hold At 0.5%
The Bank of England Monetary Policy Committee (MPC) has kept interest rates on hold at 0.5% for the 18th month in a row. The decision had been expected, although there have been calls for a rise in order to curb inflation. The MPC also continued with the Bank's £200 billion quantitative easing programme. The UK economy grew by 1.
08 February 2007
No change for UK interest rates
The Bank of England has voted to leave the interest rate unchanged at 5.25% this month. The news will come as a relief to homeowners, following last month's surprise 0.25% increase. The Bank's Monetary Police Committee increased the rate in January in an attempt to curb inflation, which hit 3% in December.
No change for UK interest rates
The Bank of England has voted to leave the interest rate unchanged at 5.25% this month. The news will come as a relief to homeowners, following last month's surprise 0.25% increase. The Bank's Monetary Police Committee increased the rate in January in an attempt to curb inflation, which hit 3% in December.
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Northern Ireland WeatherToday:A dry day with any low cloud and mist clearing during the morning leaving long spells of warm sunshine. Breezy at times around the coast. Maximum temperature 20 °C.Tonight:A fine end to the day with some sunshine, then clear spells overnight. Low cloud could form around some Irish Sea coasts later in the night. Minimum temperature 8 °C.
