Menu
09/05/2005
UK interest rate left unchanged
The Bank of England has left interest rates on hold for the ninth month running, at 4.75%.
The decision by the Monetary Policy Committee (MPC) came shortly after the publication of figures which showed a drop in the output of manufacturing industries.
The Office of National Statistics (ONS) reported that the manufacturing output dropped by 1.6% between February and March.
The decision, which was delayed because of last week’s general election, also follows a jump in inflation, from 1.6% to 1.9% in March, just under the Bank’s 2% target.
The MPC’s decision has been welcomed by the Confederation of British Industry (CBI). Last week, the CBI’s monthly Distributive Trades Survey reported a drop in sales, which it said was the most significant year-on-year fall since July 1992. The CBI said that trading was poor across most sectors, with chemists, furniture and carpet retailers being the most badly affected and warned against a “premature rise” in interest rates.
Reacting to the Bank of England's decision, CBI Chief Economic Adviser Ian McCafferty said: "Business and consumers need continued stability and will be pleased with today's decision to hold rates for the ninth consecutive month.
"Today's official figures confirm the first quarter fall in manufacturing output, and with CBI data showing that this continued into April, conditions are tough for business. Manufacturers are being hit by the continued increase in the costs of oil and raw materials and retailers have been affected by a dip in consumer confidence in the high street.
"With increased taxes coupled with higher fuel and utility bills and a slowdown in the housing market, consumers are becoming more cautious about spending money."
(KMcA/GB)
The decision by the Monetary Policy Committee (MPC) came shortly after the publication of figures which showed a drop in the output of manufacturing industries.
The Office of National Statistics (ONS) reported that the manufacturing output dropped by 1.6% between February and March.
The decision, which was delayed because of last week’s general election, also follows a jump in inflation, from 1.6% to 1.9% in March, just under the Bank’s 2% target.
The MPC’s decision has been welcomed by the Confederation of British Industry (CBI). Last week, the CBI’s monthly Distributive Trades Survey reported a drop in sales, which it said was the most significant year-on-year fall since July 1992. The CBI said that trading was poor across most sectors, with chemists, furniture and carpet retailers being the most badly affected and warned against a “premature rise” in interest rates.
Reacting to the Bank of England's decision, CBI Chief Economic Adviser Ian McCafferty said: "Business and consumers need continued stability and will be pleased with today's decision to hold rates for the ninth consecutive month.
"Today's official figures confirm the first quarter fall in manufacturing output, and with CBI data showing that this continued into April, conditions are tough for business. Manufacturers are being hit by the continued increase in the costs of oil and raw materials and retailers have been affected by a dip in consumer confidence in the high street.
"With increased taxes coupled with higher fuel and utility bills and a slowdown in the housing market, consumers are becoming more cautious about spending money."
(KMcA/GB)
Related UK National News Stories
Click here for the latest headlines.
04 November 2004
Interest rate hold praised by CBI
The Confederation of British Industry (CBI) has welcomed the Bank of England's decision to leave interest rates on hold at 4.75%. The last change in interest rates was an increase of 0.25 percentage points to the present level on August 5.
Interest rate hold praised by CBI
The Confederation of British Industry (CBI) has welcomed the Bank of England's decision to leave interest rates on hold at 4.75%. The last change in interest rates was an increase of 0.25 percentage points to the present level on August 5.
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.
28 April 2003
CBI issues call for interest rate cut
The CBI has called for a cut in interest rates on the back of a report, published today, indicating a dramatic fall in manufacturing orders. In its Quarterly Industrial Trends survey, the CBI say it is "particularly worrying" that, with a deterioration in domestic demand, orders have fallen at the fastest rate since April 1999.
CBI issues call for interest rate cut
The CBI has called for a cut in interest rates on the back of a report, published today, indicating a dramatic fall in manufacturing orders. In its Quarterly Industrial Trends survey, the CBI say it is "particularly worrying" that, with a deterioration in domestic demand, orders have fallen at the fastest rate since April 1999.
21 February 2013
Report Claims Private Companies Better At Running Prisons
Reform, a centre-right think tank, has said that private companies are better than the public sector at running the UK's prisons. 10 out of 12 privately-run prisons had lower reoffending rates among those serving 12 months or more than comparable public jails, according to the report.
Report Claims Private Companies Better At Running Prisons
Reform, a centre-right think tank, has said that private companies are better than the public sector at running the UK's prisons. 10 out of 12 privately-run prisons had lower reoffending rates among those serving 12 months or more than comparable public jails, according to the report.
15 October 2010
Extending Patient Choice 'Challenging'
Government plans to introduce wider choice and shared decision making within the NHS may be challenging to implement, says an expert on bmj.com today.
Extending Patient Choice 'Challenging'
Government plans to introduce wider choice and shared decision making within the NHS may be challenging to implement, says an expert on bmj.com today.
-
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.
