‘Interest Rates’ News
Some Call for Larger Interest Rate Cut
Posted 2008-03-18
In reaction to the Bank of England’s recent decision to cut the interest rate to 5.25 per cent, mortgage lenders announced they will pass on the savings to borrowers. The Bank of England’s decision to cut the rate was based...
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Bank of England Cuts Interest Rate
Posted 2008-02-16
The Monetary Policy Committee (MPC), whose panel of nine members meet every month to discuss and set the interest rate for the U.K., recently decided to cut the interest rate by .25 per cent-down to 5.5 per cent. The Bank of England made the decision for a low cut to address slow economic growth while keeping an eye on inflation. John Charcol’s Ray Boulger reflected that most experts expected the cut. He explained, “With the MPC receiving significant criticism for not cutting the rate for a second consecutive month in January, after a unanimous vote for the December cut, together with discussion on whether a .5 per cent cut might be necessary to achieve economic stability, there was never any real doubt on the outcome of today’s meeting.” ...
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Interest Rate Predicted to Fall Through 2008
Posted 2008-02-15
Financial experts, Global Insight, stated recently that they forecast interest rates to fall for 2008 and early 2009. Specifically, Global Insight predicts that by the end of 2008, the interest rate will have fallen to 4.5 per cent, and will continue to fall to 4.0 per cent in the beginning of 2009. Currently, the interest rate is at 5.5 per cent, with an expected cut by the Bank of England of at least a quarter per cent coming on Thursday. Chief European and U.K. economist at Global Insight, Howard Archer, explains that, “This [prediction] is based on out assumption that the U.K. will avoid recession, but will see extended below-trend growth.” In addition to the interest rate forecast, Global Insight set the gloomy prediction that the Gross Domestic Product growth will be “the equal weakest performance since 1992,” of approximately 1.8 per cent in 2008 and 2009. ...
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Consumer Fear Inflation
Posted 2008-02-6
If you hadn’t noticed from dinner conversations, office chat, and television reports, Brits are increasingly becoming concerned over the rate of inflation. Apparently, the concern is enough to impact consumer confidence throughout the U.K., according to the most recent Consumer...
Interest Rate Affects Inflation
Posted 2008-02-3
According to the Motley Fool, while the Bank of England’s decision to cut interest rates was not a surprise, it does increase concern for inflation. The interest rate cut, bringing it down a quarter of a point to 5.25 per cent, comes in the midst of increasing energy prices and some of the highest oil prices on record. The Motley Fool explains that the Bank of England’s decision was based solely on avoiding economic recession. Specifically, David Kuo, head of personal finance at Motley Fool says, “consumers should be aware of the damaging effects of inflation even if the Bank of England chooses to ignore it for now. In order to beat rising prices, we need to ensure that any savings we have will guarantee a better return.” ...