Recession Watch : Bank of England
In the early days of the UK recession, like so many regulators around the world, the Bank of England effectively "got it wrong". Nobody had ever seen a situation developing such as that which transferred from the US sub-prime mortgage market to the worldwide money markets. The fact that many banks in many countries had significant exposure to the US, by far the largest financial market in the world, meant that the after-effects of the collapse will felt immediately in places such as the UK.
The Bank of England, by its own admission, was slow to react to the problem and as the situation got worse so did the reality of the short to medium term prospects for the UK economy. However, while the Bank of England has been fairly downbeat over the last few months we have started to see signs of potential hope over last few days. The announcement that UK base rates have "bottomed out" for all intents and purposes has also added fuel to the fire of a potential recovery in the UK economy and given hope to business leaders.
The move has also focused the minds of those looking at the UK mortgage market, and will likely see increased interest in this area as investors worry about UK base rates rising in the short to medium term.
Share this..
Related stories
Cashback Cards – Earn up to £130 per Year
Research from Defaqto has revealed that consumers who spend over £500 per month on a credit card could be in line get earn up to £131 a year back in cashback. The demand for cashback cards has increased, and this has led to double the amount available on the market now than that of two years ago. Consumer demand has been the driving force behind this increase, which now sees 22 cards availabl...
Read MoreUK government extends offshore tax deadline
HM Revenue and Customs (HMRC) have extended the deadline to those who have been "dodging tax" through various offshore investments and bank accounts, from 30 November to 4 January 2010. This has been an issue prominent in the minds of HMRC for some time because the government is well aware there are literally hundreds of thousands of offshore accounts which should have been declared to the UK tax...
Read MoreBudget Headlines : Carbon emissions to fall by 34% between 2009 and 2020
Carbon emissions to fall by 34% between 2009 and 2020...
Read MoreHow will UK bank charges change in the future?
While the UK Supreme Court ruling today has effectively scuppered short-term hopes of compensation for many banking customers, it is not the end of the saga, although it is certainly a dent for confidence. However, there is a feeling that now UK banks have effectively seen their charges "rubber stamp" by the UK Supreme Court we may see a gradual increase in various banking charges which will incre...
Read MoreIf the fall in the pound is correct has the currency been overvalued for years?
While the fall in the rate of sterling against the euro has caught the headlines the currency has also fallen against the likes of the dollar which has serious implications for both import and export businesses in the UK. However, many people are now wondering, as the currency continues to collapse against the leading currencies of the world, has sterling been overrated and overvalued for many yea...
Read More