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07/08/2008
Interest Rates Held
The Bank of England has kept interest rates at 5% for the fourth month in a row in a bid to balance slow growth and rising inflation.
The Monetary Policy Committee's (MPC) primary goal is to reduce the current inflation rate of 3.8% to the Government target of 2%.
While the majority of policy makers voted to hold rates last month, one supported a cut, while another backed an increase.
There has been widespread speculation in the economic community that the economy is heading for a slowdown or at worst, a recession.
Analysts have said there is evidence to suggest that consumer price inflation will rise above 4% when July's figure is published next week.
It is even thought that inflation could top 5% before the end of the year, as energy firms raise their prices.
Hetal Mehta, Senior Economic Advisor to the Ernst & Young Item Club said that the bank has held rates because of fears of "pushing the economy into recession".
She said "it should not have come as a surprise" that "the bank felt it could do nothing but sit tight this month" and "it is a situation that is likely to prevail for a few more months".
Manufacturers group EEF's Head of Economic Policy, Lee Hopley said: "The MPC continues to be pulled in opposing directions by rising inflation and slowing growth.
"A cut in interest rates may be needed sooner rather than later to prevent the economy from drifting towards recession."
The British Retail Consortium (BRC) has agreed that a rate cut was needed "as soon as conditions would allow".
The BRC's Director General said that "weakening sales and record low consumer confidence show the downturn is deepening".
The credit crunch is continuing to have a detrimental effect on some homeowners.
According to figures released by the Financial Services Authority, home repossessions have rocketed by 40% in the first three months of the year.
However, in the US, oil prices have fallen from peaks of $147 a barrel last month to around $120 this month.
(DS)
The Monetary Policy Committee's (MPC) primary goal is to reduce the current inflation rate of 3.8% to the Government target of 2%.
While the majority of policy makers voted to hold rates last month, one supported a cut, while another backed an increase.
There has been widespread speculation in the economic community that the economy is heading for a slowdown or at worst, a recession.
Analysts have said there is evidence to suggest that consumer price inflation will rise above 4% when July's figure is published next week.
It is even thought that inflation could top 5% before the end of the year, as energy firms raise their prices.
Hetal Mehta, Senior Economic Advisor to the Ernst & Young Item Club said that the bank has held rates because of fears of "pushing the economy into recession".
She said "it should not have come as a surprise" that "the bank felt it could do nothing but sit tight this month" and "it is a situation that is likely to prevail for a few more months".
Manufacturers group EEF's Head of Economic Policy, Lee Hopley said: "The MPC continues to be pulled in opposing directions by rising inflation and slowing growth.
"A cut in interest rates may be needed sooner rather than later to prevent the economy from drifting towards recession."
The British Retail Consortium (BRC) has agreed that a rate cut was needed "as soon as conditions would allow".
The BRC's Director General said that "weakening sales and record low consumer confidence show the downturn is deepening".
The credit crunch is continuing to have a detrimental effect on some homeowners.
According to figures released by the Financial Services Authority, home repossessions have rocketed by 40% in the first three months of the year.
However, in the US, oil prices have fallen from peaks of $147 a barrel last month to around $120 this month.
(DS)
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08 September 2005
Interest rates remain on hold at 4.5%
The Bank of England has left interest rates unchanged at 4.5%, as expected by many analysts. Last month, the Bank’s Monetary Policy Committee (MPC) reduced interest rates from 4.75% to 4.5%, amid fears of a slowdown in economic growth and a slump in consumer spending.
Interest rates remain on hold at 4.5%
The Bank of England has left interest rates unchanged at 4.5%, as expected by many analysts. Last month, the Bank’s Monetary Policy Committee (MPC) reduced interest rates from 4.75% to 4.5%, amid fears of a slowdown in economic growth and a slump in consumer spending.
17 June 2008
Consumer Inflation Has 'Risen Sharply', Says Bank Of England
The Governor of the Bank of England has written a letter of explanation to the Chancellor over the rising inflation figure. The inflation rate has soared to more than 3.3% - well above the Government's target of 2% - in figures released today.
Consumer Inflation Has 'Risen Sharply', Says Bank Of England
The Governor of the Bank of England has written a letter of explanation to the Chancellor over the rising inflation figure. The inflation rate has soared to more than 3.3% - well above the Government's target of 2% - in figures released today.
04 September 2003
Interest rates stick at 3.5%
The Bank of England’s Monetary Policy Committee has announced that the UK interest rate will be held at 3.5%. Many leading economists consider that the interest rate may have reached its lowest point, particularly as there are early signs of an economic recovery.
Interest rates stick at 3.5%
The Bank of England’s Monetary Policy Committee has announced that the UK interest rate will be held at 3.5%. Many leading economists consider that the interest rate may have reached its lowest point, particularly as there are early signs of an economic recovery.
09 November 2007
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.
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.
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.
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Northern Ireland WeatherToday:A cloudy morning with a few showers at times. Becoming dry in the afternoon and staying mainly cloudy, but some sunshine breaking through particularly in the east. Maximum temperature 16 °C.Tonight:Quite cloudy across all counties at first but clear spells most likely towards Down and Antrim, becoming widespread through the evening and overnight. Minimum temperature 5 °C.
