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04/08/2005
Bank of England cuts lending rate to 4.5%
The Bank of England has reduced the UK interest lending rate to 4.5%.
The decision to cut interest rates had been widely expected in an effort to improve GDP growth, encourage consumer speeding and prevent recession in the manufacturing industry. Interest rates had remained at 4.75% since August 2004.
Business leaders welcomed the decision, but warned that further interest rate cuts might be needed.
The Confederation of British Industry (CBI). Director General Sir Digby Jones said: "This cut will be a catalyst for growth and will provide an essential boost to consumer and business confidence."
However, Sir Digby warned: "The Bank will want to keep a watchful eye on the economy to gauge the impact of this reduction as a further cut might be necessary later in the year."
David Frost, Director General of the British Chambers of Commerce (BCC) said that the Bank’s Monetary Policy Committee (MPC) had made the right decision. He said: "The economic situation has worsened, and the case for a cut in interest rates was compelling.
"While today's cut in interest rates should alleviate some of the most acute pressures facing the economy, the UK economic climate has worsened and we are facing new dangers. Given the risks facing UK businesses, and manufacturing in particular, we urge the MPC to remain vigilant. Further interest rate cuts should be considered later in the year."
Kevin Hawkins, British Retail Consortium (BRC) Director General also welcomed the decision, although he said it was “long overdue”.
He said: "The cut in interest rates will take several months before it works through to consumer behaviour on the high street and needs to be reinforced by further reductions over the next few months if the economy continues to slow down."
(KMcA/SP)
The decision to cut interest rates had been widely expected in an effort to improve GDP growth, encourage consumer speeding and prevent recession in the manufacturing industry. Interest rates had remained at 4.75% since August 2004.
Business leaders welcomed the decision, but warned that further interest rate cuts might be needed.
The Confederation of British Industry (CBI). Director General Sir Digby Jones said: "This cut will be a catalyst for growth and will provide an essential boost to consumer and business confidence."
However, Sir Digby warned: "The Bank will want to keep a watchful eye on the economy to gauge the impact of this reduction as a further cut might be necessary later in the year."
David Frost, Director General of the British Chambers of Commerce (BCC) said that the Bank’s Monetary Policy Committee (MPC) had made the right decision. He said: "The economic situation has worsened, and the case for a cut in interest rates was compelling.
"While today's cut in interest rates should alleviate some of the most acute pressures facing the economy, the UK economic climate has worsened and we are facing new dangers. Given the risks facing UK businesses, and manufacturing in particular, we urge the MPC to remain vigilant. Further interest rate cuts should be considered later in the year."
Kevin Hawkins, British Retail Consortium (BRC) Director General also welcomed the decision, although he said it was “long overdue”.
He said: "The cut in interest rates will take several months before it works through to consumer behaviour on the high street and needs to be reinforced by further reductions over the next few months if the economy continues to slow down."
(KMcA/SP)
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14 August 2001
Inflation rate fall may herald a further interest rate cut
Speculation is growing that a fall in the underlying inflation rate, down to 2.2 per cent, may give the Bank of England’s Monetary Policy Committee further room for manoeuvre to lower interest rates. Continued severe pressure on manufacturing industry has prompted further calls from industry leaders seeking another cut in the UK interest rate.
Inflation rate fall may herald a further interest rate cut
Speculation is growing that a fall in the underlying inflation rate, down to 2.2 per cent, may give the Bank of England’s Monetary Policy Committee further room for manoeuvre to lower interest rates. Continued severe pressure on manufacturing industry has prompted further calls from industry leaders seeking another cut in the UK interest rate.
08 February 2002
UK interest rates remain on hold
Interest rates are on hold following the Bank of England's decision to keep the current level of interest at 4 per cent.
UK interest rates remain on hold
Interest rates are on hold following the Bank of England's decision to keep the current level of interest at 4 per cent.
04 September 2001
Bank likely to leave interest rate unchanged
The Monetary Policy Committee (MPC) of the Bank of England are likely to leave interest rates unchanged at 5 per cent. The Committee are due to begin their latest two-day meeting amid a spate of calls for another cut in the interest rate.
Bank likely to leave interest rate unchanged
The Monetary Policy Committee (MPC) of the Bank of England are likely to leave interest rates unchanged at 5 per cent. The Committee are due to begin their latest two-day meeting amid a spate of calls for another cut in the interest rate.
26 August 2004
Credit law reform will not have interest rate ceiling: DTI
An interest rate ceiling will not be introduced as part of the government's shake-up on consumer credit law, Consumer Minister Gerry Sutcliffe announced today.
Credit law reform will not have interest rate ceiling: DTI
An interest rate ceiling will not be introduced as part of the government's shake-up on consumer credit law, Consumer Minister Gerry Sutcliffe announced today.
07 November 2002
Bank of England holds UK interest rate at 4%
The Bank of England has held the main UK interest rate at 4% for the twelfth consecutive month. This is despite a larger than anticipated cut by the US Federal Reserve. Leading economists were split on whether or not interest rates would or should be dropped.
Bank of England holds UK interest rate at 4%
The Bank of England has held the main UK interest rate at 4% for the twelfth consecutive month. This is despite a larger than anticipated cut by the US Federal Reserve. Leading economists were split on whether or not interest rates would or should be dropped.
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Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
