Menu
08/02/2007
No change for UK interest rates
The Bank of England has voted to leave the interest rate unchanged at 5.25% this month.
The news will come as a relief to homeowners, following last month's surprise 0.25% increase.
The Bank's Monetary Police Committee increased the rate in January in an attempt to curb inflation, which hit 3% in December. The government's target for inflation is 2%.
Business groups have welcomed the decision. David Kern, Economic Advisor to the British Chambers of Commerce: "The MPC's decision to leave interest rates unchanged at 5.25% was widely anticipated by the markets. We are naturally pleased that our members were not faced yet again with a further shock increase in interest rates. But it is important that, before contemplating additional increases, the MPC appreciates fully the acute pressures on British business resulting from the three increases in Bank rate announced already since August last year.
"We acknowledge that inflation is a problem, and we accept that the MPC may have to take further action. But monetary policy cannot affect the economy instantaneously. We believe that the cumulative effects of the three interest increases implemented in recent months, and of the marked appreciation in the value of sterling, will prove to be very significant.
"A significant slowdown in activity is highly unlikely later this year even if interest rates stay at 5.25%. The MPC must allow time for the measures taken already to work, before rushing to hike rates further."
(KMcA)
The news will come as a relief to homeowners, following last month's surprise 0.25% increase.
The Bank's Monetary Police Committee increased the rate in January in an attempt to curb inflation, which hit 3% in December. The government's target for inflation is 2%.
Business groups have welcomed the decision. David Kern, Economic Advisor to the British Chambers of Commerce: "The MPC's decision to leave interest rates unchanged at 5.25% was widely anticipated by the markets. We are naturally pleased that our members were not faced yet again with a further shock increase in interest rates. But it is important that, before contemplating additional increases, the MPC appreciates fully the acute pressures on British business resulting from the three increases in Bank rate announced already since August last year.
"We acknowledge that inflation is a problem, and we accept that the MPC may have to take further action. But monetary policy cannot affect the economy instantaneously. We believe that the cumulative effects of the three interest increases implemented in recent months, and of the marked appreciation in the value of sterling, will prove to be very significant.
"A significant slowdown in activity is highly unlikely later this year even if interest rates stay at 5.25%. The MPC must allow time for the measures taken already to work, before rushing to hike rates further."
(KMcA)
Related UK National News Stories
Click here for the latest headlines.
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.
06 October 2005
Bank of England leaves interest rates on hold
The Bank of England has left UK interest rates on hold at 4.5% for the second month running. The Bank’s Monetary Policy Committee had reduced interest rates from 4.75% in August, in an attempt to reverse a slump in consumer spending. However, retail sales volumes fell at their fastest pace for 22 years last month.
Bank of England leaves interest rates on hold
The Bank of England has left UK interest rates on hold at 4.5% for the second month running. The Bank’s Monetary Policy Committee had reduced interest rates from 4.75% in August, in an attempt to reverse a slump in consumer spending. However, retail sales volumes fell at their fastest pace for 22 years last month.
09 November 2007
Interest Rates On Hold But Cut Likely Soon
Mounting pressure for a cut in the UK's interest rate hasn't produced one yet, but the good news for borrowers is that the Bank of England has at least kept interest rates on hold at 5.75% and indications are that a cut is due next time.
Interest Rates On Hold But Cut Likely Soon
Mounting pressure for a cut in the UK's interest rate hasn't produced one yet, but the good news for borrowers is that the Bank of England has at least kept interest rates on hold at 5.75% and indications are that a cut is due next time.
10 November 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.
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.
-
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.
