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12/11/2003
Bank of England predicts 'modest' UK recovery
The Bank of England's latest quarterly report has forecast both growth in the economy and a rise in inflationary pressures within the economy.
However, The Bank of England's Governor Mervyn King has warned that some homeowners may end up in a negative equity situation should UK interest rates continue to increase to hold inflation in check.
Playing down the risks, he said that "heavily indebted households" could be affected by changes in economic circumstances and interest rate changes. He warned people to think carefully about what level of debt they could afford.
The Bank of England's Monetary Policy Committee last week increased interest rates for the first time in four years. Some analysts predict that interest rates may have to rise by a full point to at least 4.25% by next year, if inflation is to be kept close to the government's 2.5% target.
However, the quarterly inflation report from the Bank indicated that many of the key indicators showed no sign that personal debt problems had increased significantly, and inflation is expected to remain at or around the 2.5% target figure in the near term.
The report also predicted that the economic growth over the next two years is likely to be "above trend" with GDP rising annually at a rate of around 3% by the middle of next year. Mr King said that the outlook for growth had "improved".
While the report considered the general economic outlook as broadly favourable, concerns were raised that continued high house price inflation could threaten the general economy by exacerbating inflationary pressures.
(SP)
However, The Bank of England's Governor Mervyn King has warned that some homeowners may end up in a negative equity situation should UK interest rates continue to increase to hold inflation in check.
Playing down the risks, he said that "heavily indebted households" could be affected by changes in economic circumstances and interest rate changes. He warned people to think carefully about what level of debt they could afford.
The Bank of England's Monetary Policy Committee last week increased interest rates for the first time in four years. Some analysts predict that interest rates may have to rise by a full point to at least 4.25% by next year, if inflation is to be kept close to the government's 2.5% target.
However, the quarterly inflation report from the Bank indicated that many of the key indicators showed no sign that personal debt problems had increased significantly, and inflation is expected to remain at or around the 2.5% target figure in the near term.
The report also predicted that the economic growth over the next two years is likely to be "above trend" with GDP rising annually at a rate of around 3% by the middle of next year. Mr King said that the outlook for growth had "improved".
While the report considered the general economic outlook as broadly favourable, concerns were raised that continued high house price inflation could threaten the general economy by exacerbating inflationary pressures.
(SP)
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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.
30 August 2007
Prison Officers Back At Work After Strike
Prison officers in England and Wales have returned work after calling off Wednesday's wildcat strike. The surprise strike action, which involved staff from 140 jails across England and Wales, began at 7am on Wednesday and was expected to last 24 hours.
Prison Officers Back At Work After Strike
Prison officers in England and Wales have returned work after calling off Wednesday's wildcat strike. The surprise strike action, which involved staff from 140 jails across England and Wales, began at 7am on Wednesday and was expected to last 24 hours.
10 May 2007
Interest rates rise to 5.5%
The Bank of England has announced that interest rates will rise from 5.25% to 5.5%. The rise is the fourth since last August, bringing the cost of borrowing to its highest level since 2001. The rise has been expected by analysts in order to try and keep inflation down.
Interest rates rise to 5.5%
The Bank of England has announced that interest rates will rise from 5.25% to 5.5%. The rise is the fourth since last August, bringing the cost of borrowing to its highest level since 2001. The rise has been expected by analysts in order to try and keep inflation down.
08 December 2005
Interest rates rest at 4.5%
The Bank of England has kept interest rates at 4.5% for the fourth month in succession. The Bank’s Monetary Policy Committee (MPC) reflects the recent rise in inflation and anxiety over retail sales in the run up to Christmas. Last month inflation was forecast to remain above the government's 2% target, mainly due to rising oil prices.
Interest rates rest at 4.5%
The Bank of England has kept interest rates at 4.5% for the fourth month in succession. The Bank’s Monetary Policy Committee (MPC) reflects the recent rise in inflation and anxiety over retail sales in the run up to Christmas. Last month inflation was forecast to remain above the government's 2% target, mainly due to rising oil prices.
16 January 2006
House price inflation rises slightly
House price inflation has risen by 0.8% from 1.8% in October to 2.5% in November, the latest figures produced by the Office of the Deputy Prime Minister (ODPM) have revealed. The rise in UK prices between October and November was attributed to rises in average prices for all types of houses.
House price inflation rises slightly
House price inflation has risen by 0.8% from 1.8% in October to 2.5% in November, the latest figures produced by the Office of the Deputy Prime Minister (ODPM) have revealed. The rise in UK prices between October and November was attributed to rises in average prices for all types of houses.
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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.
