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08/01/2004
UK Interest rates sticks at 3.75%
As expected, the Bank of England has decided to hold the base rate at 3.75% today.
The Bank's Monetary Policy Committee (MPC) opted to hold the rate following a quarter point rise in December - the first rise in four years.
However, analysts are continuing to warn consumers that rises are imminent in the year ahead.
The manufacturing sector continues to be concerned that a rise in interest rates will help push up an already exporter unfriendly dollar-sterling exchange rate. But this is offset by a concern that a low borrowing rate is fuelling runaway house price increases and building up undesirable inflationary pressures within the UK economy.
Following today’s decision by the MPC to leave interest rates on hold, Richard Dakin for Lloyds TSB, said: "Today’s decision was widely anticipated and does not come as a surprise. With inflation low and uncertainty persisting over retail spending growth, the MPC knows it has ample scope to wait before making a decision to raise interest rates.
"High Street spending picked up at the end of December but this was due partly to discounts being offered by retailers. Raising rates now could jeopardise growth in the sector, which is already slowing.
"The MPC will also be keen to take stock of February’s inflationary report, which will take account of the new inflation measure and target, before moving to raise interest rates."
Earlier one union urged the MPC to cut interest rates to help secure manufacturing jobs which are considered to be at risk.
Amicus said it had written to the MPC in a plea for British exports to prioritised over consumer spending against the backdrop of low interest rates in Europe and the US.
Roger Lyons, Amicus General Secretary and President of the TUC, said: "There is massive uncertainty because of last months rise in interests rates. Obsession with consumer spending and house prices in the southeast is hammering British manufacturing export markets.
"The only way to slow the growth of sterling is to cut interest rates which are already higher than those in the EU and four times as high as the US."
(SP)
The Bank's Monetary Policy Committee (MPC) opted to hold the rate following a quarter point rise in December - the first rise in four years.
However, analysts are continuing to warn consumers that rises are imminent in the year ahead.
The manufacturing sector continues to be concerned that a rise in interest rates will help push up an already exporter unfriendly dollar-sterling exchange rate. But this is offset by a concern that a low borrowing rate is fuelling runaway house price increases and building up undesirable inflationary pressures within the UK economy.
Following today’s decision by the MPC to leave interest rates on hold, Richard Dakin for Lloyds TSB, said: "Today’s decision was widely anticipated and does not come as a surprise. With inflation low and uncertainty persisting over retail spending growth, the MPC knows it has ample scope to wait before making a decision to raise interest rates.
"High Street spending picked up at the end of December but this was due partly to discounts being offered by retailers. Raising rates now could jeopardise growth in the sector, which is already slowing.
"The MPC will also be keen to take stock of February’s inflationary report, which will take account of the new inflation measure and target, before moving to raise interest rates."
Earlier one union urged the MPC to cut interest rates to help secure manufacturing jobs which are considered to be at risk.
Amicus said it had written to the MPC in a plea for British exports to prioritised over consumer spending against the backdrop of low interest rates in Europe and the US.
Roger Lyons, Amicus General Secretary and President of the TUC, said: "There is massive uncertainty because of last months rise in interests rates. Obsession with consumer spending and house prices in the southeast is hammering British manufacturing export markets.
"The only way to slow the growth of sterling is to cut interest rates which are already higher than those in the EU and four times as high as the US."
(SP)
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10 June 2004
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UK interest rates rise to 4.5%
Interest rates have been increased by a quarter percent to 4.5%, the Bank of England has announced today. The bank's Monetary Policy Committee (MPC) said today that while inflation is below the 2% target, "cost pressures are rising".
08 June 2006
UK interest rates stay at 4.5%
The Bank of England has today announced that interest rates will remain unchanged for the tenth consecutive month. However, while rates were again held at 4.5%, there are concerns that growing inflationary pressures may men that interest rates will be set to rise later this year.
UK interest rates stay at 4.5%
The Bank of England has today announced that interest rates will remain unchanged for the tenth consecutive month. However, while rates were again held at 4.5%, there are concerns that growing inflationary pressures may men that interest rates will be set to rise later this year.
04 September 2001
Bank likely to leave interest rate unchanged
The Monetary Policy Committee (MPC) of the Bank of England are likely to leave interest rates unchanged at 5 per cent. The Committee are due to begin their latest two-day meeting amid a spate of calls for another cut in the interest rate.
Bank likely to leave interest rate unchanged
The Monetary Policy Committee (MPC) of the Bank of England are likely to leave interest rates unchanged at 5 per cent. The Committee are due to begin their latest two-day meeting amid a spate of calls for another cut in the interest rate.
14 February 2002
Inflation rises but interest rates unchanged
The Bank of England Monetary Policy Committee (MPC) have decided not to raise interest rates at its monthly meeting, despite inflation warnings from the Office for National Statistics (ONS). The figures released by the ONS revealed an underlying inflation rate that exceeded the rates anticipated by the Bank of England.
Inflation rises but interest rates unchanged
The Bank of England Monetary Policy Committee (MPC) have decided not to raise interest rates at its monthly meeting, despite inflation warnings from the Office for National Statistics (ONS). The figures released by the ONS revealed an underlying inflation rate that exceeded the rates anticipated by the Bank of England.
05 February 2004
Interest rates rise to 4%
Interest rates have been upped today a quarter percentage point to 4%, the Bank of England has announced. The bank's Monetary Policy Committee (MPC), said that it based the decision in the light of the latest quarterly projections for output and inflation, to be published in the February Inflation Report.
Interest rates rise to 4%
Interest rates have been upped today a quarter percentage point to 4%, the Bank of England has announced. The bank's Monetary Policy Committee (MPC), said that it based the decision in the light of the latest quarterly projections for output and inflation, to be published in the February Inflation Report.
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Northern Ireland WeatherToday:After a dry start this morning rain will spread from the northwest across all parts. This afternoon will be dull with some patchy rain and drizzle. Becoming much milder through the afternoon. Maximum temperature 11 °C.Tonight:A cloudy evening and night with a little light rain or drizzle, perhaps some clear periods developing along the east coast. A very mild night everywhere. Minimum temperature 10 °C.
