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10/07/2003
Interest rates cut by 0.25%
The Bank of England's Monetary Policy Committee (MPC) has today voted to reduce interest rates by 0.25% - to 3.5%.
The MPC says that the "global economic recovery has remained hesitant", but that preconditions for recovery "remain in place".
The MPC's statement read: "Against that background, and given the possibility of subdued economic activity continuing in the near term, the committee judged that a reduction in official interest rates to 3.5% was necessary in order to keep inflation on track to meet the target in the medium term."
The previous change in interest rates was a reduction of 0.25% to 3.75% on 6 February 2003.
Among the number of factors considered by the MPC, was that the prospect for external demand for UK output was weaker than previously expected and output growth in the UK has recently been below trend.
The MPC's statement added: "Slower consumer demand and subdued private investment have so far offset the impact of higher public spending. Although RPIX inflation is currently above the 2.5% target, this is the result of temporary factors which are expected to unwind in the coming months.
"The fall in the sterling effective exchange rate since the start of this year should help underpin growth, but in recent weeks that fall has been partly reversed, reducing the prospective impact on inflation."
The CBI praised the bank for "listening to business' concerns about the economy and cutting interest rates".
CBI Chief Economist, Ian McCafferty, said: "This is the right decision. Inflationary pressures are well under control.
"The bank's move will help support the economy, which has lost momentum this year, and provide further insurance against the still evident downside risks of anaemic global growth."
(GMcG)
The MPC says that the "global economic recovery has remained hesitant", but that preconditions for recovery "remain in place".
The MPC's statement read: "Against that background, and given the possibility of subdued economic activity continuing in the near term, the committee judged that a reduction in official interest rates to 3.5% was necessary in order to keep inflation on track to meet the target in the medium term."
The previous change in interest rates was a reduction of 0.25% to 3.75% on 6 February 2003.
Among the number of factors considered by the MPC, was that the prospect for external demand for UK output was weaker than previously expected and output growth in the UK has recently been below trend.
The MPC's statement added: "Slower consumer demand and subdued private investment have so far offset the impact of higher public spending. Although RPIX inflation is currently above the 2.5% target, this is the result of temporary factors which are expected to unwind in the coming months.
"The fall in the sterling effective exchange rate since the start of this year should help underpin growth, but in recent weeks that fall has been partly reversed, reducing the prospective impact on inflation."
The CBI praised the bank for "listening to business' concerns about the economy and cutting interest rates".
CBI Chief Economist, Ian McCafferty, said: "This is the right decision. Inflationary pressures are well under control.
"The bank's move will help support the economy, which has lost momentum this year, and provide further insurance against the still evident downside risks of anaemic global growth."
(GMcG)
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10 November 2005
Interest rates remain unchanged
The Bank of England has left interest rates unchanged at 4.5% for the third month in a row. The decision, made by the Bank’s Monetary Policy Committee (MPC), had been expected, due to the recent rise in inflation. Inflation is forecast to remain above the 2% target for a while, mainly due to rising oil prices.
Interest rates remain unchanged
The Bank of England has left interest rates unchanged at 4.5% for the third month in a row. The decision, made by the Bank’s Monetary Policy Committee (MPC), had been expected, due to the recent rise in inflation. Inflation is forecast to remain above the 2% target for a while, mainly due to rising oil prices.
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.
05 June 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.
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.
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.
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:It will be cloudy again throughout the day. Mainly dry in the morning, but patchy drizzle in places, becoming more widespread and persistent in the afternoon. Freshening southwesterly winds. Maximum temperature 12 °C.Tonight:Cloudy with a spell of heavy rain pushing south through late evening and the early hours, followed by some clear spells. Minimum temperature 6 °C.
