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10/11/2005
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.
However, retailers had been hoping for a cut in rates before the Christmas trading period, in order to boost flagging retail sales.
The MPC lowered interest rates from 4.75% to 4.5% in August – the first cut in two years.
David Frost, Director General of the British Chambers of Commerce, also said that the decision to leave the rates on hold was disappointing. He said: "The financial markets have expected today's MPC decision to leave interest rates unchanged at 4.5%. But British business is disappointed that the MPC felt unable to act more boldly to counter the worsening economic circumstances and the sharp slowdown in the pace of economic activity.
“While we appreciate that the MPC faces serious uncertainties, waiting too long before taking corrective action also entails major risks. The economic situation has worsened considerably, and business confidence is weak. It is therefore critically important that the MPC should maintain a flexible approach, and should stand ready to counter the sharp slowdown in the pace of economic activity.”
However, recent figures have indicated that house prices have stabilised in recent months.
Analysts’ opinions have been divided on the Bank’s next move on interest rates. Many believe that interest rates will remain on hold until the New Year, but opinions are split on whether the MPC will increase rates or introduce another cut.
This month’s announcement coincides with the Bank’s key quarterly inflation report, due to be published next week.
(KMcA/SP)
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.
However, retailers had been hoping for a cut in rates before the Christmas trading period, in order to boost flagging retail sales.
The MPC lowered interest rates from 4.75% to 4.5% in August – the first cut in two years.
David Frost, Director General of the British Chambers of Commerce, also said that the decision to leave the rates on hold was disappointing. He said: "The financial markets have expected today's MPC decision to leave interest rates unchanged at 4.5%. But British business is disappointed that the MPC felt unable to act more boldly to counter the worsening economic circumstances and the sharp slowdown in the pace of economic activity.
“While we appreciate that the MPC faces serious uncertainties, waiting too long before taking corrective action also entails major risks. The economic situation has worsened considerably, and business confidence is weak. It is therefore critically important that the MPC should maintain a flexible approach, and should stand ready to counter the sharp slowdown in the pace of economic activity.”
However, recent figures have indicated that house prices have stabilised in recent months.
Analysts’ opinions have been divided on the Bank’s next move on interest rates. Many believe that interest rates will remain on hold until the New Year, but opinions are split on whether the MPC will increase rates or introduce another cut.
This month’s announcement coincides with the Bank’s key quarterly inflation report, due to be published next week.
(KMcA/SP)
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08 March 2007
Interest rates remain unchanged at 5.25%
UK interest rates have been left on hold at 5.25% this month by the Bank of England's Monetary Policy Committee (MPC). The MPC raised the interest rate by 0.25% in January. This followed three other quarter rate rises since last August. Inflation recently rose to 3%, well above the government's target of 2%.
Interest rates remain unchanged at 5.25%
UK interest rates have been left on hold at 5.25% this month by the Bank of England's Monetary Policy Committee (MPC). The MPC raised the interest rate by 0.25% in January. This followed three other quarter rate rises since last August. Inflation recently rose to 3%, well above the government's target of 2%.
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.
09 March 2006
UK interest rates left on hold
UK interest rates have remained on hold at 4.5% for the seventh month running. The Bank of England's Monetary Policy Committee decision is believed to have been influenced by a gradual recovery in house prices and other signs of economic strength, as well as a steady inflation rate.
UK interest rates left on hold
UK interest rates have remained on hold at 4.5% for the seventh month running. The Bank of England's Monetary Policy Committee decision is believed to have been influenced by a gradual recovery in house prices and other signs of economic strength, as well as a steady inflation rate.
04 August 2011
Interest Rates Held At Historic Low
The interest rate has again been kept at the record low of 0.5% by the Bank of England's Monetary Policy Committee (MPC). This comes as no surprise as most economists had anticipated that the rates would remain unchanged due to the subdued economy after new that GDP figures for the second quarter showed growth of just 0.2%.
Interest Rates Held At Historic Low
The interest rate has again been kept at the record low of 0.5% by the Bank of England's Monetary Policy Committee (MPC). This comes as no surprise as most economists had anticipated that the rates would remain unchanged due to the subdued economy after new that GDP figures for the second quarter showed growth of just 0.2%.
10 July 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".
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".
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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.
