09/04/2009
Bank Holds Interest Rates At 0.5%
The Bank of England (BoE) has announced it will hold interest rates at 0.5%, following six successive months of cuts.
The bank's Monetary Policy committee (MPC) last month slashed borrowing costs to the record low, and embarked on a £75 billion quantitative easing plan to help fight the recession.
The MPC also voted to continue "with the programme, announced on 5 March, of asset purchases totalling £75bn financed by the insurance of central bank reserves".
Royal Bank of Scotland analyst Stuart Porteous said: "While it looks like (the first quarter of 2009) may well be the worst quarter of this downturn, any talk of recovery is premature.
"The Bank of England has emptied both its barrels, and it will be some months before we can judge just how successful it has been."
There are also indications the mortgage market may be starting to ease also, with bank figures showing the average fixed-rate at 75% loan-to-value last month was down 4.01% from February's 4.35%.
It is also the lowest since July 2003, when it was 3.87%.
However, according to the figures, longer-term mortgage fixes, favoured by mortgage brokers who warn against the threat of rising interest rates in the future, have not fallen as far.
Howard Archer, chief UK and European economist of IHS Global Insight, said: "These figures will obviously provide a boost to consumers' purchasing power and also provide support to the housing market.
"Nevertheless, we suspect that consumers will still be reluctant to spend overall due to the serious pressures weighing down on them - notably, soaring unemployment, diminishing wage growth and serious concerns about the future. Many households will probably try to use their reduced mortgage payments to improve their balance sheets."
(JM/KMcA)
The bank's Monetary Policy committee (MPC) last month slashed borrowing costs to the record low, and embarked on a £75 billion quantitative easing plan to help fight the recession.
The MPC also voted to continue "with the programme, announced on 5 March, of asset purchases totalling £75bn financed by the insurance of central bank reserves".
Royal Bank of Scotland analyst Stuart Porteous said: "While it looks like (the first quarter of 2009) may well be the worst quarter of this downturn, any talk of recovery is premature.
"The Bank of England has emptied both its barrels, and it will be some months before we can judge just how successful it has been."
There are also indications the mortgage market may be starting to ease also, with bank figures showing the average fixed-rate at 75% loan-to-value last month was down 4.01% from February's 4.35%.
It is also the lowest since July 2003, when it was 3.87%.
However, according to the figures, longer-term mortgage fixes, favoured by mortgage brokers who warn against the threat of rising interest rates in the future, have not fallen as far.
Howard Archer, chief UK and European economist of IHS Global Insight, said: "These figures will obviously provide a boost to consumers' purchasing power and also provide support to the housing market.
"Nevertheless, we suspect that consumers will still be reluctant to spend overall due to the serious pressures weighing down on them - notably, soaring unemployment, diminishing wage growth and serious concerns about the future. Many households will probably try to use their reduced mortgage payments to improve their balance sheets."
(JM/KMcA)
Related UK National News Stories
Click here for the latest headlines.
21 November 2008
Home Repossessions On The Rise, CML Reveal
The number of homes repossessed by mortgage lenders has risen by 12% to 11,300 in the last three months, new figures have shown. The Council of Mortgage Lenders (CML) also said 1.44% of mortgages were at least three months in arrears as at the end of September 2008.
Home Repossessions On The Rise, CML Reveal
The number of homes repossessed by mortgage lenders has risen by 12% to 11,300 in the last three months, new figures have shown. The Council of Mortgage Lenders (CML) also said 1.44% of mortgages were at least three months in arrears as at the end of September 2008.
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.
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".
26 June 2014
Bank Of England To Impose Mortgage Caps
The Bank of England (BoE) is to impose new limits on mortgages from October, limiting the loan-to-income (LTI) ratio for most applicants seeking new bonds or re-mortgages, amid fears of instability in the housing market.
Bank Of England To Impose Mortgage Caps
The Bank of England (BoE) is to impose new limits on mortgages from October, limiting the loan-to-income (LTI) ratio for most applicants seeking new bonds or re-mortgages, amid fears of instability in the housing market.
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.
-
Northern Ireland WeatherToday:A sunny but frosty start for many. However cloud increases by midday with a few showers reaching the north coast, these mostly light but spreading inland this afternoon. Chilly. Maximum temperature 8 °C.Tonight:A rather cloudy evening with scattered showers. Becoming drier through the night with some good clear spells developing and a patchy frost away from coasts. Minimum temperature 0 °C.
