Where next for UK base rates?
Despite the fact that many experts, only a few weeks ago, still believed that UK base rates would bottom out at 0% it now appears as though the Bank of England's Monetary Policy Committee (MPC) is set to take a pause this month. It would seem that the introduction of quantitative easing and the apparent threat that inflation could rise substantially in the medium to longer term will see UK base rates remain at 0.5% for the time being.
Those who have followed the reduction in UK base rates will know we have seen a downward trend in each month for the last six months, leading to base rates which have never been lower in the 315 year history of the Bank of England. This fact alone is a sharp indication of the severity and danger which the UK economy and the worldwide economy face from this ongoing recession. The introduction of quantitative easing recently hit the headlines but the likes of the G20 and other financial issues have pushed it off the front pages.
It will be interesting to see the details of the minutes of the last MPC meeting, due out later this month, as these should give an indication of the future direction of UK base rates.
Share this..
Related stories
When did you last review your pension plan?
Despite the fact that pensions are in the news each and every day the moment, with more and more final salary schemes going out of business and pensioners struggling to survive on a state pension, many people have not even looked at their pension arrangements for some time.
It is vital that you review your pension plan on a regular basis, annually if possible, because ultimately if...
Is Labours Summer Of Discontent On The Way?
As the number of strike ballots planned in the UK over the next few months continues to rise there are fears that we may be heading towards a summer of discontent in the UK. This week sees the balloting of 800,000 public sector workers after a 2% pay offer from the government was firmly rejected by the unions. This is on top of the proposed strike by education workers over their working climate...
Read MoreUK government delays publication of new banking regulations
The UK government has today attracted significant criticism from both opposition parties and those in the UK financial sector. After stripping out the forthcoming financial sector White Paper, the legal framework for new legislation, from the last budget this particularly vital piece of legislation had been expected this week. However, amid claims that there are problems behind the scenes,...
Quantitative easing or further base rate reductions?
The Bank of England has today given the strongest indication that UK base rates could fall to 0% in the very short term. With next month's meeting pencilled in by many as the perfect opportunity to drastically reduce UK base rates there is a feeling that quantitative easing could also be brought into play.
The Bank of England has already requested permission to "print money", which...
The FSA looks to revamp complaints procedure
While the FSA (Financial Services Authority) continues to receive record complaints with regards to the UK financial sector, we could see a significant change in the presentation of statistics in the future. The FSA has announced plans which would see companies attracting more than 500 complaints per six months being forced to issue further details about these complaints, specifically how many wer...
Read More