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10/03/2005
Borrowing rate pegged at 4.75%
The interest rate on borrowing has remained at 4.75% as the Bank of England's Monetary Policy Committee (MPC) announced its latest decision to peg the rate for the seventh month in a row.
The MPC has not increased interest rates since last year, when the rate rose over five consecutive months from a low of 3.5% in November 2003 to stand at 4.75% in August where it has remained.
However, there are mixed signals from the economy. Consumer spending fell in the crucial period through December only picking up again later in January. House prices too have taken a knock with the Halifax reporting a 0.5% dip in February, and figures on mortgage lending indicate that this market too is entering a flat spell with little activity on the housing markets.
Some, though, do not consider that the steady rise to August last year is sufficient to cool the UK economy. While inflation remains on target at around 2%, this is expected to increase towards the end of the year.
There remains the possibility that interest rates may rise slightly to perhaps 5%, but this is considered to be the top forecast as there are fears that too much of a rise in interest rates could stifle the economy.
(SP)
The MPC has not increased interest rates since last year, when the rate rose over five consecutive months from a low of 3.5% in November 2003 to stand at 4.75% in August where it has remained.
However, there are mixed signals from the economy. Consumer spending fell in the crucial period through December only picking up again later in January. House prices too have taken a knock with the Halifax reporting a 0.5% dip in February, and figures on mortgage lending indicate that this market too is entering a flat spell with little activity on the housing markets.
Some, though, do not consider that the steady rise to August last year is sufficient to cool the UK economy. While inflation remains on target at around 2%, this is expected to increase towards the end of the year.
There remains the possibility that interest rates may rise slightly to perhaps 5%, but this is considered to be the top forecast as there are fears that too much of a rise in interest rates could stifle the economy.
(SP)
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12 October 2009
Remortgaging Continues To Decline
The mortgage market is on two speed settings, as house purchase lending continues to recover but remortgaging continues to decline, according to the latest data released by the Council of Mortgage Lenders (CML). The number of house purchase loans in August (53,000) is down 5% from July but 29% higher than August a year ago.
Remortgaging Continues To Decline
The mortgage market is on two speed settings, as house purchase lending continues to recover but remortgaging continues to decline, according to the latest data released by the Council of Mortgage Lenders (CML). The number of house purchase loans in August (53,000) is down 5% from July but 29% higher than August a year ago.
16 January 2007
Cooling house prices after interest rate hikes
The latest figures on house price rises show that the market has cooled following the November interest rate rise.
Cooling house prices after interest rate hikes
The latest figures on house price rises show that the market has cooled following the November interest rate rise.
12 October 2004
Drop in cost of travelling drives inflation rate down
Inflation fell by 0.2% to 1.3% in September due in part to reductions in the cost of transport services, the Office of National Statistics (ONS) has said. The ONS said that the seasonal price drop in both air and sea fares from high summer levels drove inflation down as, in both cases, the reductions were greater than last year's.
Drop in cost of travelling drives inflation rate down
Inflation fell by 0.2% to 1.3% in September due in part to reductions in the cost of transport services, the Office of National Statistics (ONS) has said. The ONS said that the seasonal price drop in both air and sea fares from high summer levels drove inflation down as, in both cases, the reductions were greater than last year's.
12 June 2009
Borrowers Switch Back To Fixes
Take up of fixed-rate products increased further as the interest rate cycle has now reached its floor, according to new data from the Council of Mortgage Lenders (CML). In April, 69% of borrowers took out fixed rate mortgages with an average rate of 4.83%, the highest share since June 2008.
Borrowers Switch Back To Fixes
Take up of fixed-rate products increased further as the interest rate cycle has now reached its floor, according to new data from the Council of Mortgage Lenders (CML). In April, 69% of borrowers took out fixed rate mortgages with an average rate of 4.83%, the highest share since June 2008.
17 April 2007
Inflation rises to 3.1%
The Bank of England has been forced to write a letter of explanation to Chancellor Gordon Brown after inflation rose to 3.1% in March. The government's target for inflation was targeted at 2% when the Chancellor placed the Bank of England in charge of deciding the interest rate in 1997.
Inflation rises to 3.1%
The Bank of England has been forced to write a letter of explanation to Chancellor Gordon Brown after inflation rose to 3.1% in March. The government's target for inflation was targeted at 2% when the Chancellor placed the Bank of England in charge of deciding the interest rate in 1997.
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