Menu
05/03/2009
BoE Rate Slashed To Half A Point
Interest rates in the UK have hit a 300 year low - at 0.5% - after the sixth consecutive cut in as many months was announced by the Bank of England today
More funds are also set to be pumped out by the bank in order to boost the ailing economy, it has been revealed.
It had been widely predicted the bank would drop interest rates from 1% to half a point, as well as announce a "quantitative easing" package.
Around £75bn additional capital is to be injected into the economy by the central bank, through the purchase of government bonds and assets - sometimes incorrectly referred to as "printing money".
It is hoped the extra billions circulating in the country will encourage lending by major financial institutions, and subsequently ease the ongoing 'credit crunch'.
Philip Shaw, Chief Economist at Investec, told the BBC that quantitative easing "should in principle encourage the banks to lend to private sector agents such as households and businesses, stocking monetary growth and stimulating activity".
Business leaders have blasted the banking systems' alleged unresponsiveness to recent interest rate cuts, claiming it is still difficult to secure loans.
Savers have also argued that there is now little reward for holding monies in UK banking institutions.
Ian McCafferty, CBI Chief Economist, said: "Though this latest cut will help support business and consumer confidence, it is unlikely to have a dramatic impact on the cost or availability of credit."
(PR/JM)
More funds are also set to be pumped out by the bank in order to boost the ailing economy, it has been revealed.
It had been widely predicted the bank would drop interest rates from 1% to half a point, as well as announce a "quantitative easing" package.
Around £75bn additional capital is to be injected into the economy by the central bank, through the purchase of government bonds and assets - sometimes incorrectly referred to as "printing money".
It is hoped the extra billions circulating in the country will encourage lending by major financial institutions, and subsequently ease the ongoing 'credit crunch'.
Philip Shaw, Chief Economist at Investec, told the BBC that quantitative easing "should in principle encourage the banks to lend to private sector agents such as households and businesses, stocking monetary growth and stimulating activity".
Business leaders have blasted the banking systems' alleged unresponsiveness to recent interest rate cuts, claiming it is still difficult to secure loans.
Savers have also argued that there is now little reward for holding monies in UK banking institutions.
Ian McCafferty, CBI Chief Economist, said: "Though this latest cut will help support business and consumer confidence, it is unlikely to have a dramatic impact on the cost or availability of credit."
(PR/JM)
Related UK National News Stories
Click here for the latest headlines.
05 May 2011
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.
07 November 2013
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England's Monetary Policy Committee has voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375bn.
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England's Monetary Policy Committee has voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375bn.
05 February 2009
Mortgage Lenders Vow To Pass Further Interest Rate Cuts
Four of the UK's biggest mortgage lenders have vowed to pass on the interest rate cuts, which were today announced by the Bank of England (BoE). The bank said the rate cuts, and government measures to boost the economy, "would provide a considerable stimulus to activity as the year progressed".
Mortgage Lenders Vow To Pass Further Interest Rate Cuts
Four of the UK's biggest mortgage lenders have vowed to pass on the interest rate cuts, which were today announced by the Bank of England (BoE). The bank said the rate cuts, and government measures to boost the economy, "would provide a considerable stimulus to activity as the year progressed".
30 September 2008
Tesco's 10% Profit Growth Amid Weak Economy
Weaker trading conditions have not refrained Tesco from meeting half-year profit targets - with the supermarket giant today reporting a 10% growth in UK sales. Adverse market conditions have failed to damage the retailer's performance - amid calls for interest rate cuts and radical moves to stabilise the global financial services industry.
Tesco's 10% Profit Growth Amid Weak Economy
Weaker trading conditions have not refrained Tesco from meeting half-year profit targets - with the supermarket giant today reporting a 10% growth in UK sales. Adverse market conditions have failed to damage the retailer's performance - amid calls for interest rate cuts and radical moves to stabilise the global financial services industry.
09 January 2014
Bank Of England Holds Interest Rate
The Bank of England has said it will maintain its interest rate at 0.5%. It also gave no indication as to when it might increase the rate. In August 2013, governor Mark Carney said the unemployment rate would need to fall to 7% before an increase in interest rates would be considered.
Bank Of England Holds Interest Rate
The Bank of England has said it will maintain its interest rate at 0.5%. It also gave no indication as to when it might increase the rate. In August 2013, governor Mark Carney said the unemployment rate would need to fall to 7% before an increase in interest rates would be considered.
-
Northern Ireland WeatherToday:A chilly start with a widespread frost and some freezing fog, any freezing fog slow to clear. Otherwise bright with sunny spells and coastal showers. Light winds. Maximum temperature 6 °C.Tonight:Coastal showers dying out with a widespread frost developing along with freezing fog, which could become extensive. Winds remaining light. Minimum temperature -3 °C.
