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06/07/2006
UK interest rates remain on hold
UK interest rates have been kept on hold at 4.5% for the eleventh month in a row, the Bank of England has announced.
The decision, by the Bank's Monetary Policy Committee, had been widely expected, however some analysts believe that rates could rise before the end of the year.
In May, inflation rose to 2.2%, because of rising energy and fuel bills - the Bank's target is 2%.
However, last week, Bank of England governor Mervyn King said immediate action was unlikely to be taken because the cost of other products had not risen and wage growth had remained under control.
Commenting on the decision, Ian McCafferty, CBI Chief Economic Advisor, said: "With mixed economic signals, the Bank has chosen a steady course that will encourage stability.
"Spiralling energy costs have created inflationary pressures but the overshoot should prove temporary and does not warrant a rate rise. Any movement today would have been premature.
"The economy is growing and consumer spending has picked up, at least during the World Cup. But unemployment is rising, whilst overseas the US economy appears to be slowing. These issues demand the full attention of the MPC over the coming months."
(KMcA)
The decision, by the Bank's Monetary Policy Committee, had been widely expected, however some analysts believe that rates could rise before the end of the year.
In May, inflation rose to 2.2%, because of rising energy and fuel bills - the Bank's target is 2%.
However, last week, Bank of England governor Mervyn King said immediate action was unlikely to be taken because the cost of other products had not risen and wage growth had remained under control.
Commenting on the decision, Ian McCafferty, CBI Chief Economic Advisor, said: "With mixed economic signals, the Bank has chosen a steady course that will encourage stability.
"Spiralling energy costs have created inflationary pressures but the overshoot should prove temporary and does not warrant a rate rise. Any movement today would have been premature.
"The economy is growing and consumer spending has picked up, at least during the World Cup. But unemployment is rising, whilst overseas the US economy appears to be slowing. These issues demand the full attention of the MPC over the coming months."
(KMcA)
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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.
07 April 2005
Labour the party of economic stability, says Blair
The Labour Party has begun electioneering in earnest, placing the economy at the heart of its campaign. Prime Minister Tony Blair said the country faced a fundamental choice “about what kind of country we are, what kind of people we are, what kind of future we see for ourselves.
Labour the party of economic stability, says Blair
The Labour Party has begun electioneering in earnest, placing the economy at the heart of its campaign. Prime Minister Tony Blair said the country faced a fundamental choice “about what kind of country we are, what kind of people we are, what kind of future we see for ourselves.
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Northern Ireland WeatherToday:After a dry start this morning rain will spread from the northwest across all parts. This afternoon will be dull with some patchy rain and drizzle. Becoming much milder through the afternoon. Maximum temperature 11 °C.Tonight:A cloudy evening and night with a little light rain or drizzle, perhaps some clear periods developing along the east coast. A very mild night everywhere. Minimum temperature 10 °C.
