Are UK base rates set to fall further?
Bank of England deputy governor Charles Bean has today fuelled speculation that UK base rates could fall at the next MPC meeting. In a speech to the National Farmers Union conference in Birmingham he indicated that because UK inflation is running below the target level of 2% there was a need to make cheaper credit available to support businesses across the country. This has also brought about a discussion regarding deflation which is a nightmare scenario for any government. So when can we expect the next announcement on UK base rates?
The next MPC meeting is scheduled for 5 March and while it would be extraordinary for base rates to be cut before then this has not been ruled out completely. Sterling continues to fall, after a short bounce over recent days, amid growing signs that the UK government and the Bank of England are "not interested" in supporting the currency. There was also speculation that the authorities are pushing sterling lower and lower because it will assist with exports out of the UK which will become cheaper for foreign buyers.
However, a weaker pound will make UK imports more expensive which could in due course affect the rate of inflation and push many UK households to the limit of their financial power.
Share this..
Related stories
Are you making use of your online banking facilities?
As more and more of us look towards the Internet for our everyday needs it appears there are still many people who are reluctant to use the Internet for their financial affairs. While we periodically hear about various scandals and frauds on the Internet, it is easy to forget that these types of criminal activity have been commonplace off-line for many many years. However, it appears that the Inte...
Read MoreLloyds Bank to return to profit
Lloyds Bank has today confirmed the company traded profitably in the first three months of 2010 and expects to make a profit for the full year. This is an about turn from only a few months ago when the company was struggling with bad debts, reduced business levels and was under pressure from the government to do more for small businesses and consumers. While the company has yet to confirm the e...
Read MoreSusan Boyle set to make £5 million
She may have come second on reality TV show Britain's Got Talent but opera singer Susan Boyle is set to have the last laugh after being mocked. The shy lady from West Lothian has become one of the most popular reality TV stars of all time with a YouTube clip watched by over 100 million people around the world. She has been to America, she has been on chat shows, she has been under pressure and she...
Read More'No surge' in rental demand in 2008
It has been claimed that there will not be a huge rush for rental property in 2008, meaning investors should not seek to snap up as much property as possible.Due to the uncertainty in the property market, Lanlordzone.co.uk has argued that there may be a slight increase in demand for rental property over the coming 12 months, as more people decide to remain out of the property sector.But potential...
Read More