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16/05/2008
Little Hope Of New Interest Rate Fall
The UK should not expect another cut in interest rates for at least two years, the Bank of England indicated yesterday.
It also warned that inflation would rise far above its previous forecasts and persist at levels well above the government’s target until early 2010.
Mervyn King, the Bank Governor, said the consequence of price increases would be "a squeeze on real take-home pay, which will slow consumer spending and output growth, perhaps sharply".
He added that it was "quite possible we may get the odd quarter or two of negative growth", but added that a recession was not the Bank’s central forecast.
Alistair Darling, the Cancellor, said his unfunded £2.7bn tax cut would "support the economy when it needs to be supported".
However, Mr King said the effects of the emergency Budget would be "modest".
Presenting the latest UK quarterly forecasts, the Bank said inflation was likely to rise above 3% over the next few months and remain more than one percentage point above its 2% target.
Being independent, the Bank of England is required to explain to the government every three months how it will bring inflation back under control if it deviates by more than one percentage point from the target.
The Bank's inflation projections do not return to the 2% target until early 2010, suggesting it has no room for rate cuts until then, even though the UK economy will slow sharply.
The Bank's stance on monetary policy appears similar to that of the European Central Bank.
The blame for higher inflation, Mr King said, lay with surging energy and food prices, along with higher import prices resulting from falls in sterling. The Bank expects another 15% in domestic gas and electricity prices in coming months.
Malcolm Barr of JPMorgan said the message in the inflation report was clear: "The Monetary Policy Committee believes it has to tolerate a slowdown in growth which is sharp, takes the economy close to stagnation and continues well into 2009 if it is to control inflation risks."
(BMcC)
It also warned that inflation would rise far above its previous forecasts and persist at levels well above the government’s target until early 2010.
Mervyn King, the Bank Governor, said the consequence of price increases would be "a squeeze on real take-home pay, which will slow consumer spending and output growth, perhaps sharply".
He added that it was "quite possible we may get the odd quarter or two of negative growth", but added that a recession was not the Bank’s central forecast.
Alistair Darling, the Cancellor, said his unfunded £2.7bn tax cut would "support the economy when it needs to be supported".
However, Mr King said the effects of the emergency Budget would be "modest".
Presenting the latest UK quarterly forecasts, the Bank said inflation was likely to rise above 3% over the next few months and remain more than one percentage point above its 2% target.
Being independent, the Bank of England is required to explain to the government every three months how it will bring inflation back under control if it deviates by more than one percentage point from the target.
The Bank's inflation projections do not return to the 2% target until early 2010, suggesting it has no room for rate cuts until then, even though the UK economy will slow sharply.
The Bank's stance on monetary policy appears similar to that of the European Central Bank.
The blame for higher inflation, Mr King said, lay with surging energy and food prices, along with higher import prices resulting from falls in sterling. The Bank expects another 15% in domestic gas and electricity prices in coming months.
Malcolm Barr of JPMorgan said the message in the inflation report was clear: "The Monetary Policy Committee believes it has to tolerate a slowdown in growth which is sharp, takes the economy close to stagnation and continues well into 2009 if it is to control inflation risks."
(BMcC)
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13 August 2007
House Prices Rise By 12% In June
UK annual house price inflation in June 2007 was 12.1%, up from 10.8% in May 2007. Annual house price inflation in London was 17.5% in June, up from 14.3% in May. The UK annual house price inflation rate for the 3 months to June was 11.3% and 15.1% in London. The UK house price inflation rate rose from 10.8% in May 2007 to 12.1% in June 2007.
House Prices Rise By 12% In June
UK annual house price inflation in June 2007 was 12.1%, up from 10.8% in May 2007. Annual house price inflation in London was 17.5% in June, up from 14.3% in May. The UK annual house price inflation rate for the 3 months to June was 11.3% and 15.1% in London. The UK house price inflation rate rose from 10.8% in May 2007 to 12.1% in June 2007.
13 June 2005
House price inflation declines
Annual house price inflation dropped to 6.9% in April, a sharp fall from 12.6% in March, according to the latest figures from the Office of the Deputy Prime Minister (ODPM). The ODPM also reported a fall in mix-adjusted prices of 0.8% between March and April, which contrasted sharply with the 4.5% rise during the same period in 2004.
House price inflation declines
Annual house price inflation dropped to 6.9% in April, a sharp fall from 12.6% in March, according to the latest figures from the Office of the Deputy Prime Minister (ODPM). The ODPM also reported a fall in mix-adjusted prices of 0.8% between March and April, which contrasted sharply with the 4.5% rise during the same period in 2004.
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.
12 December 2005
House price inflation drops
Annual house price inflation dropped again in October, according to the latest figures from the Office of the Deputy Prime Minister. House price inflation was 2.2% in October, a fall from September’s figure of 3.3%. The ODPM reported that the average house price in the UK was £186,103 in October, compared with £186,755 in September.
House price inflation drops
Annual house price inflation dropped again in October, according to the latest figures from the Office of the Deputy Prime Minister. House price inflation was 2.2% in October, a fall from September’s figure of 3.3%. The ODPM reported that the average house price in the UK was £186,103 in October, compared with £186,755 in September.
12 September 2005
House price rise slowdown continues
Annual house price inflation in July was 4%, down from 5% in June according to figures released today by the Deputy Prime Minister's office. This drop in the growth of house prices pushed the annual house price inflation in London down to 0.9% in July 2005, a fall from the from 1.7% figure in June 2005.
House price rise slowdown continues
Annual house price inflation in July was 4%, down from 5% in June according to figures released today by the Deputy Prime Minister's office. This drop in the growth of house prices pushed the annual house price inflation in London down to 0.9% in July 2005, a fall from the from 1.7% figure in June 2005.
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