Could UK base rates remain unchanged until 2012?
As the threat of inflation begins to recede, with evidence that factory prices are turning downwards, many people are now looking towards UK base rates and the next increase. A number of economists believe that there is no chance of the base rate rise within 2010 and indeed a number are now looking towards 2012 and beyond before UK base rates will increase. So could UK base rates remain unchanged until 2012?
There is no doubt that the ongoing economic difficulties in the UK, and around the world, are deep seated and long-lasting. As many people warned when the UK economy turned downwards, this particular type of economic downturn is very different to the traditional boom and bust scenarios. We have seen some of the more prominent financial institutions around the world fall by the wayside, we have seen banking sectors struggling to survive and indeed we have seen governments around the world ploughing billions upon billions of pounds of taxpayer's money into their local economy.
The after-effects of the worldwide recession, brought on by the credit crunch, will last for many years to come and many people will be surprised at how deep the problems are buried.
Share this..
Related stories
Can the Bank of England really act independent of the UK government?
Only a few weeks ago the Conservative party announced that it would beef-up the power of the Bank of England in the event of a win at the next election. This will probably be at the expense of the Financial Services Authority (FSA) and would cast a whole different light on the UK regulatory scene and the UK financial sector. However, even now there is some concern as to whether the Bank of England...
Read MoreUK double dip recession fears recede
A report by the Organisation for Economic Co-operation and Development (OECD) has today confirmed that the UK economy is unlikely to experience a double dip recession in 2010. Indeed the OECD believes that the UK economy will grow at the fastest rate of all but one of the G7 members in the second quarter of 2010. In what will be a welcome relief to Gordon Brown, the OECD also believes that the...
Read MoreWill UK Gold In Beijing Lift The Nation?
Those with even the remotest interest in sport will be well aware that the UK Olympic Team (aka Team GB) is performing above expectations in the Olympic Games and should come back with our biggest ever haul of medals. As the feel good factor grips the nation is this the turning point we need to push start the economy again? Will this be enough to get us out onto the high street spending again?
German Economy drags down the Eurozone
The revelation that the Eurozone economy fell by a higher than expected 2.5% in the first quarter of 2009 has taken many economists and governments by surprise. However the like-for-like figure compared to the same quarter in 2008 shows an even more disappointing 4.6% reduction which is again worse than expected. However, the German economy is giving severe cause for alarm after it fell by 3.8% in...
Read MoreIs the UK car manufacturing industry on the brink of collapse?
Amid claims that one of the U.K.'s largest car manufacturing plants is on the verge of collapse, the Unite union has today stepped in to try and pressurise the UK government into forwarding a life-saving rescue package. While the union has refused to name the plant at risk it has confirmed that upwards of 6000 jobs are potentially at risk. This is a direct consequence of the collapse in the UK car...
Read More