The Bank of England left interest rates on hold at 5.0 percent for a fifth month running on Thursday. Given the speed and scale of the economic slowdown, however, most are convinced a rate cut is just a matter of time. Britain’s economy failed to grow in the second quarter of this year for the first time since the early 1990s and many analysts believe the country has already tipped into recession. With unemployment rising and real incomes falling, consumer confidence is at rock bottom and retailers are feeling the pinch.
Archive for the ‘Rate hunch’ Category
Bank of England holds rates steady at 5%
Thursday, September 4th, 2008Bank holds base rate held at 5%
Friday, July 11th, 2008The Bank of England held interest rates steady at 5.0% on Thursday, in a widely expected decision as policymakers tussle with the twin evils of a slowing economy and surging inflation. By keeping rates on hold this month, the Bank is buying itself a little more time to see what interest rate path is required to bring inflation back close to the 2% target from the current 4.1% over the medium term.
Bank keep rates on hold at 5.25%
Thursday, March 6th, 2008The Bank of England’s Monetary Policy Committee (MPC) decided to keep interest rates on hold today at 5.25%. A decision which is in line with market expectation and predictions. It made no statement to accompany its decision but policymakers had been suggesting the bank had to balance the demands of slowing growth and rising inflation. Soaring oil prices and the rising cost of food is putting a huge pressure on inflation around the world. The policymakers are concerned that inflation could rise to around 3% in the coming months which will require the central bank Governor, Mervyn King to write an explanatory letter to the government. However, economists are predicting further interest rate cuts in the coming months.
