Bank 'might cut rates again'
A further cut to interest rates from the Bank of England is expected later this week.Groups including the British Chamber of Commerce (BCC) believe that the Bank rate will be reduced from its current level of two per cent.The markets have priced in a 50 basis point reduction to 1.5 per cent - which would be the lowest official rate in the Bank's 300-year history.Reducing the Bank rate generally leads to reduced consumer loan rates, providing an economic stimulus.Policymakers have embarked on a strategy of sharp rate cuts in each of the last three months, due to their fears over the UK's current economic slowdown.Speaking to the Sunday Times, David Kern, economic adviser to the British Chambers of Commerce, said: "The rapid worsening in the economic situation and growing fears over rising unemployment reinforce the need for the [Bank] to continue with aggressive interest-rate cuts."
Share this..
Related stories
Should the UK government intervene in the open market?
Confirmation that the NS&I have reduced savings rates to effectively open the door for UK banks has been greeted with howls of dissatisfaction from the open market. At a time when the UK government quite clearly confirmed that even majority state-owned banking institutions would be run at arm's length and free of any intervention from politicians there appears to have been a significant U-turn. Ho...
Read MoreBank Of England Minutes Show Interest Rate Rise Was Considered
In a move which further strengthens the belief that the Bank of England will raise UK base rates sooner rather than later, the minutes from the June meeting show that the move was considered. It seems as though two members suggested a pre-emptive strike although there was little follow through with a vote of 8-1 to hold rates at the current level.
One suggestion for an early rise w...
Lord Myners attacks UK mortgage sector
Despite being on the end of a number of critical reports himself, Lord Myners today launched an attack on the UK mortgage market and especially the charges racked up by those in arrears. He was appearing before the Treasury select committee of the House of Commons and appears to have somewhat overstepped the mark with a suggestion that the Financial Services Authority (FSA) should pay "serious att...
Read MoreAlistair Darling hands pay deal powers to the FSA
In a move which is sure to impact upon the overall competitiveness of the London financial markets it has been revealed Alistair Darling proposes to give the FSA (Financial Services Authority) the power to veto the remuneration packages of bank executives. If the FSA believe the package encourages excessive risk it can demand that the bank in question is forced to put aside additional capital into...
Read MoreUK government borrowing hits £16 billion in November
With the UK government borrowing deficit as a whole well over £500 billion news that last month's deficit alone topped £16 billion should not come as much of a surprise. However, the situation is set to get much worse and experts, as well as the government, have already admitted the total figure will hit over £1 trillion before the UK economy recovers. This would mean that consumers and taxpaye...
Read More