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06/07/2006
UK interest rates remain on hold
UK interest rates have been kept on hold at 4.5% for the eleventh month in a row, the Bank of England has announced.
The decision, by the Bank's Monetary Policy Committee, had been widely expected, however some analysts believe that rates could rise before the end of the year.
In May, inflation rose to 2.2%, because of rising energy and fuel bills - the Bank's target is 2%.
However, last week, Bank of England governor Mervyn King said immediate action was unlikely to be taken because the cost of other products had not risen and wage growth had remained under control.
Commenting on the decision, Ian McCafferty, CBI Chief Economic Advisor, said: "With mixed economic signals, the Bank has chosen a steady course that will encourage stability.
"Spiralling energy costs have created inflationary pressures but the overshoot should prove temporary and does not warrant a rate rise. Any movement today would have been premature.
"The economy is growing and consumer spending has picked up, at least during the World Cup. But unemployment is rising, whilst overseas the US economy appears to be slowing. These issues demand the full attention of the MPC over the coming months."
(KMcA)
The decision, by the Bank's Monetary Policy Committee, had been widely expected, however some analysts believe that rates could rise before the end of the year.
In May, inflation rose to 2.2%, because of rising energy and fuel bills - the Bank's target is 2%.
However, last week, Bank of England governor Mervyn King said immediate action was unlikely to be taken because the cost of other products had not risen and wage growth had remained under control.
Commenting on the decision, Ian McCafferty, CBI Chief Economic Advisor, said: "With mixed economic signals, the Bank has chosen a steady course that will encourage stability.
"Spiralling energy costs have created inflationary pressures but the overshoot should prove temporary and does not warrant a rate rise. Any movement today would have been premature.
"The economy is growing and consumer spending has picked up, at least during the World Cup. But unemployment is rising, whilst overseas the US economy appears to be slowing. These issues demand the full attention of the MPC over the coming months."
(KMcA)
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Labour the party of economic stability, says Blair
The Labour Party has begun electioneering in earnest, placing the economy at the heart of its campaign. Prime Minister Tony Blair said the country faced a fundamental choice “about what kind of country we are, what kind of people we are, what kind of future we see for ourselves.
Labour the party of economic stability, says Blair
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Interest Rates Could Rise This Year
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Interest Rates Could Rise This Year
The Governor of the Bank of England Mark Carney has said that interest rates may rise this year and warned that "gradual and limited" increases would be needed as the economy recovers. Mr Carney made the comments during his first Mansion House speech on Thursday. It is understood that the base rate has been stuck at 0.
05 July 2007
Interest rates hiked to 5.75%
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Interest rates hiked to 5.75%
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10 May 2007
Interest rates rise to 5.5%
The Bank of England has announced that interest rates will rise from 5.25% to 5.5%. The rise is the fourth since last August, bringing the cost of borrowing to its highest level since 2001. The rise has been expected by analysts in order to try and keep inflation down.
Interest rates rise to 5.5%
The Bank of England has announced that interest rates will rise from 5.25% to 5.5%. The rise is the fourth since last August, bringing the cost of borrowing to its highest level since 2001. The rise has been expected by analysts in order to try and keep inflation down.
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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.
