FinancialAdvice.co.uk Logo

Qualified advisers answering your
Financial Questions
call 0800 092 1245

Bank of England and ECB leave rates on hold

With the euro zone under more and more pressure and the debt markets still struggling to pull clear of the recent turmoil the European Central Bank yesterday confirmed that rates will remain unchanged for the foreseeable future. This was a situation facing the Bank of England only hours earlier where the MPC decided to maintain UK rates of 0.5%. So what are the prospects for European and UK base rates in the short-term?

Unfortunately it does not look good for European and UK savers in the short to medium term with economic uncertainty, budget cuts and turmoil in the debt markets unlikely to lead to higher base rates for the foreseeable future. The need to maintain rates at relatively low levels is paramount in the fight against a double dip recession as more and more companies feel the harsh winds of recession blowing through yet again.

The other possible fly in the ointment could be inflation which has been fairly strong in the UK in the early months of 2010. Even though the Bank of England believes that UK inflation will subdue in the second half of 2010 this remains to be seen as there are concerns that higher inflation could force the Bank of England to move base rates upwards and curtail any short-term economic recovery.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:



Latest News

Blogs

Helpful new tax year facts that could affect you and your money


Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.


Read more

Useful Links

Popular Searches

Please Enter More Details

 
Enter More Details
Continue