Menu
07/08/2003
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%.
However, the latest figures on the UK economy continue to indicate that the service sector remains relatively buoyant despite continuing decline the manufacturing sector.
Some top analysts think that interest rates have reached their lowest level, and that with the rate at its lowest level in almost 50 years it is inadvisable to lower the lending rate further.
Earlier this week the Halifax reported that the housing sector, generally considered to be overheating due to the low cost of borrowing has seen house prices increase by an average 19% in the last year.
However, despite property prices rising by 1.3% in July there does not appear to be any strong indication that inflationary pressures are growing within the wider economy. A retail sector report published today by the British Retail Consortium showed that shop prices were marginally up by 0.5% on last year and that prices actually fell by 1.1% during July this year.
Despite fears that runaway consumer spending was fuelling inflation the rate of inflation, excluding the effect of mortgage interest, fell by 0.1% in June to reach 2.8%, down from 2.9% in May - well within the inflation target of 2.5%.
(SP)
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%.
However, the latest figures on the UK economy continue to indicate that the service sector remains relatively buoyant despite continuing decline the manufacturing sector.
Some top analysts think that interest rates have reached their lowest level, and that with the rate at its lowest level in almost 50 years it is inadvisable to lower the lending rate further.
Earlier this week the Halifax reported that the housing sector, generally considered to be overheating due to the low cost of borrowing has seen house prices increase by an average 19% in the last year.
However, despite property prices rising by 1.3% in July there does not appear to be any strong indication that inflationary pressures are growing within the wider economy. A retail sector report published today by the British Retail Consortium showed that shop prices were marginally up by 0.5% on last year and that prices actually fell by 1.1% during July this year.
Despite fears that runaway consumer spending was fuelling inflation the rate of inflation, excluding the effect of mortgage interest, fell by 0.1% in June to reach 2.8%, down from 2.9% in May - well within the inflation target of 2.5%.
(SP)
Related UK National News Stories
Click here for the latest headlines.
08 May 2003
Bank of England holds interest rates at 3.75%
The Monetary Policy Committee of the Bank of England has announced its decision to keep interest rates in the UK at 3.75%. The decision by the MPC to hold rates comes in spite of concerns about the increasingly weakened state of the UK economy, particularly the in manufacturing sector.
Bank of England holds interest rates at 3.75%
The Monetary Policy Committee of the Bank of England has announced its decision to keep interest rates in the UK at 3.75%. The decision by the MPC to hold rates comes in spite of concerns about the increasingly weakened state of the UK economy, particularly the in manufacturing sector.
06 August 2009
No Change For Interest Rate
The UK's interest rates has remained unchanged today as the Bank of England left the level set at 0.5%. The Monetary Policy Committee's (MPC) second decision, to expand quantitative easing (QE) at the same time, underlines the caution among policymakers over the strength of the UK's recovery from recession despite recent positive signs.
No Change For Interest Rate
The UK's interest rates has remained unchanged today as the Bank of England left the level set at 0.5%. The Monetary Policy Committee's (MPC) second decision, to expand quantitative easing (QE) at the same time, underlines the caution among policymakers over the strength of the UK's recovery from recession despite recent positive signs.
07 September 2005
Halifax reports house prices rise
House prices rose by 1.6% in August, the UK’s biggest mortgage lender, has reported. However, the Halifax warned that the rise could be temporary, boosted by the recent interest rates cuts by the Bank of England. The price rise in August followed a modest 0.4% increase in July and was the biggest monthly rise since September 2004.
Halifax reports house prices rise
House prices rose by 1.6% in August, the UK’s biggest mortgage lender, has reported. However, the Halifax warned that the rise could be temporary, boosted by the recent interest rates cuts by the Bank of England. The price rise in August followed a modest 0.4% increase in July and was the biggest monthly rise since September 2004.
05 July 2007
Interest rates hiked to 5.75%
Interest rates have risen by 0.25% to 5.75% in the fifth rise since August 2006. The Bank of England's Monetary Policy Committee said that the rise had been due to evidence that inflationary pressures remained "elevated.
Interest rates hiked to 5.75%
Interest rates have risen by 0.25% to 5.75% in the fifth rise since August 2006. The Bank of England's Monetary Policy Committee said that the rise had been due to evidence that inflationary pressures remained "elevated.
09 June 2005
Interest rates remain at 4.75%
The Monetary Policy Committee for the Bank of England has left UK interest rates unchanged for the tenth month in a row. The decision to keep the interest rate at running, at 4.75% follows further uncertainty in the economy. Figures published today revealed that while there was slight monthly increase, 0.
Interest rates remain at 4.75%
The Monetary Policy Committee for the Bank of England has left UK interest rates unchanged for the tenth month in a row. The decision to keep the interest rate at running, at 4.75% follows further uncertainty in the economy. Figures published today revealed that while there was slight monthly increase, 0.
-
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.
