Bank of England holds interest rates as MPC minutes trial ends July 9, 2015 The Bank of England has finished an internal trial of new procedures and from now on will publish details of monetary policy decisions on the same day as they are made. In a much expected move, the nine-strong monetary policy committee held rates at 0.5 per cent today. They have been unchanged since March [...]
NIESR says UK growth means interest rate hike nearing July 7, 2015 The economy grew 0.7 per cent in the three months to June, from 0.6 per cent in the three months ended May, suggesting Britain's economy grew by expanded 2.7 per cent in the last 12 months. The forecasts from the National Institute for Economic and Social Research (NIESR) are good news for Chancellor George Osborne [...]
Bank of England monetary policy committee could split over timing of first interest rate rise June 24, 2015 One of the MPC’s nine members, Dr Martin Weale, has indicated that the Bank of England should be prepared to raise the cost of borrowing as early as August. The comments indicate the monetary policy committee could soon face a split over when to raise interest rates from the historic low of 0.5 per cent they [...]
Berkeley says interest rates hike could ease London house price rises June 17, 2015 Housebuilding giant Berkeley Group Holdings said yesterday that the prospect of an interest rate hike may help ease the pressure on London’s rising house prices, which have been fuelled by a lack of available homes in the capital. Data from the Office of National Statistic yesterday showed that wages have risen at their fastest [...]
Bank of England’s Ian McCafferty says time for interest rate rise nearing June 12, 2015 Bank of England official Ian McCafferty has said the time for an interest rate hike is drawing closer, with the factors keeping a lid on inflation are expected to fade "as we move into next year". "The economy is starting to return to more normal conditions, after arguably the biggest shock in over a hundred [...]
UK house prices: The return of cheap housing finance? Chelsea Building Society unveils the first tracker mortgage to be launched with an interest rate lower than one per cent June 5, 2015 When the sub-prime mortgage bubble burst, everyone blamed cheap borrowing – but that clearly hasn't perturbed the Chelsea Building Society, which today unveiled the first ever tracker mortgage launched with an interest rate below one per cent. To be fair, housebuyers who want to borrow under the scheme need to meet pretty stringent restrictions, including [...]
HSBC to charge banks for euro deposits in response to low interest rates May 19, 2015 HSBC will soon be charging other banks that keep deposits with them, in response to the low-interest rate environment. Deposits of euros, Swiss Francs, Danish crowns and Swedish krona will be charged by Europe’s largest bank from August. But it will only affect banks, not other businesses or individuals. “HSBC charges banks for deposits they [...]
Mark Carney moves the goalposts again as interest rate hike seems way off – Bottom Line May 13, 2015 Unemployment is down, wages are up and inflation is forecast to rise too high in a couple of years. Surely it is time to raise interest rates, isn’t it? Not so, Mark Carney said yesterday. Borrowers may cheer, but it is a touch worrying that the governor seems keen to keep rates down for [...]
FTSE keeps rising as Bank of England holds interest rate at 0.5 per cent May 11, 2015 The FTSE 100 was the only European market to rise today, as investors continued to show their optimism at the outcome of the election and the Bank of England's decision to hold interest rates. By lunchtime, the FTSE was trading above 7,000 points for the second day in a row, 2.47 per cent up on [...]
As the Bank’s chief economist suggested, are interest rates as likely to fall as they are to rise? March 22, 2015 Adam Memon, head of economic research at the Centre for Policy Studies, says Yes. The Bank of England has kept interest rates at 0.5 per cent for six years; far longer than anyone imagined back in 2009. This extraordinary monetary stimulus has played an important role in the UK’s recovery. Nevertheless, the fact that the [...]