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05/08/2004
Interest rates rise to 4.75%
Interest rates are to rise by a quarter percentage point to 4.75%, the Bank of England has announced today.
The last time the interest rates rose was June, when the MPC upped the rate by 0.25 percentage points to 4.5%.
The Bank's Monetary Policy Committee (MPC) said that today's move was necessary to keep inflation on track.
Whilst inflation had reached 1.6% in June, and was likely to fall back in the near term, underlying cost pressures have risen.
With demand already high relative to the supply capacity of the economy, continued strong growth is likely to lead to rising inflationary pressures, the MPs said. The committee decided that an increase was necessary to keep inflation on track to meet the 2% target in the medium term.
The MPC also said that output growth had been "robust" and business surveys point to continued expansion.
"Although the housing market remained buoyant, there are now signs that it is starting to ease, and the growth of consumption may be moderating. Investment and public sector consumption have both grown strongly and demand in UK export markets continues to pick up," the committee said.
The Confederation of British Industry (CBI) welcomed the MPC's "steady strategy of gradual, well-signalled rises" as it reduced the risk of collateral damage to exporters and avoided "unnecessary shocks".
CBI Chief Economic Adviser Ian McCafferty said: "The UK economy is running at close to full capacity, with five consecutive quarters of strong growth. This means that rates are likely to have to rise further in coming months to reach a neutral interest rate of around 5%."
He added: "The continuation of the MPC's steady approach provides the economic stability that firms need and is the best way to ensure that interest rates peak at the lowest possible level."
The British Chambers of Commerce (BCC) warned the MPC to resist the clamour for rapid rate rises designed to bring the housing market under control.
David Frost, Director General of the BCC, said: "Interest rate overkill would have damaging consequences for the rest of the economy, especially the manufacturing sector. We urge the Bank to take the concerns of UK business fully into account in its future deliberations."
(gmcg)
The last time the interest rates rose was June, when the MPC upped the rate by 0.25 percentage points to 4.5%.
The Bank's Monetary Policy Committee (MPC) said that today's move was necessary to keep inflation on track.
Whilst inflation had reached 1.6% in June, and was likely to fall back in the near term, underlying cost pressures have risen.
With demand already high relative to the supply capacity of the economy, continued strong growth is likely to lead to rising inflationary pressures, the MPs said. The committee decided that an increase was necessary to keep inflation on track to meet the 2% target in the medium term.
The MPC also said that output growth had been "robust" and business surveys point to continued expansion.
"Although the housing market remained buoyant, there are now signs that it is starting to ease, and the growth of consumption may be moderating. Investment and public sector consumption have both grown strongly and demand in UK export markets continues to pick up," the committee said.
The Confederation of British Industry (CBI) welcomed the MPC's "steady strategy of gradual, well-signalled rises" as it reduced the risk of collateral damage to exporters and avoided "unnecessary shocks".
CBI Chief Economic Adviser Ian McCafferty said: "The UK economy is running at close to full capacity, with five consecutive quarters of strong growth. This means that rates are likely to have to rise further in coming months to reach a neutral interest rate of around 5%."
He added: "The continuation of the MPC's steady approach provides the economic stability that firms need and is the best way to ensure that interest rates peak at the lowest possible level."
The British Chambers of Commerce (BCC) warned the MPC to resist the clamour for rapid rate rises designed to bring the housing market under control.
David Frost, Director General of the BCC, said: "Interest rate overkill would have damaging consequences for the rest of the economy, especially the manufacturing sector. We urge the Bank to take the concerns of UK business fully into account in its future deliberations."
(gmcg)
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04 August 2011
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Interest Rates Held At Historic Low
The interest rate has again been kept at the record low of 0.5% by the Bank of England's Monetary Policy Committee (MPC). This comes as no surprise as most economists had anticipated that the rates would remain unchanged due to the subdued economy after new that GDP figures for the second quarter showed growth of just 0.2%.
04 March 2004
Bank of England hold interest rates at 4%
The Bank of England's Monetary Policy Committee (MPC) has today voted to hold interest rates at 4%. The Confederation of British Industry (CBI) welcomed the move and the bank's "gradualist approach" managing rates rises.
Bank of England hold interest rates at 4%
The Bank of England's Monetary Policy Committee (MPC) has today voted to hold interest rates at 4%. The Confederation of British Industry (CBI) welcomed the move and the bank's "gradualist approach" managing rates rises.
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.
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.
09 September 2010
UK Interest Rates Remain On Hold At 0.5%
The Bank of England Monetary Policy Committee (MPC) has kept interest rates on hold at 0.5% for the 18th month in a row. The decision had been expected, although there have been calls for a rise in order to curb inflation. The MPC also continued with the Bank's £200 billion quantitative easing programme. The UK economy grew by 1.
UK Interest Rates Remain On Hold At 0.5%
The Bank of England Monetary Policy Committee (MPC) has kept interest rates on hold at 0.5% for the 18th month in a row. The decision had been expected, although there have been calls for a rise in order to curb inflation. The MPC also continued with the Bank's £200 billion quantitative easing programme. The UK economy grew by 1.
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