Unanimous vote to keep interest rates on hold
According to the minutes recently released from the August Monetary Policy Committee meeting the decision to keep interest rates on hold earlier this month was a unanimous one. Interest rates following the August meeting were kept at 5.75% even though many analysts and economists had been predicting that it would rise to 6% with a further 0.25% rise. Interest rates have risen by 1.25% in the past year, with a series of five interest rate rises of 0.25% each.
The minutes from the latest Monetary Policy Committee meeting also stated that members had 'no firm view' with regards to whether interest rates would need to rise again in order to try and bring inflation under control. In March inflation stood at 3.1%, which was way above the government target of 2%. This feel to 2.4% by June, and according to the latest figures this has now dropped within the government target in July, coming in at 1.9%.
Inflation has not been within the government target since March 2006, and therefore this sharp drop has given many people hope that no further interest rate rises will be needed, as the Bank of England had been applying these to try and bring inflation back within target. However, the Monetary Policy Committee stated that the shorter term outlook with regards to inflation "was still clouded with uncertainty, particularly about the path of household goods, food and utility prices".
With regards to the latest vote to keep interest rates on hold on analyst stated: "Very much as we expected, 9-0 is the first unanimous vote since May. The key quote is that most had no firm view on whether rates would need to rise. We remain of the view that the MPC is in wait-and-see mode."
22nd August 2007
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According to a recent report a number of IVA companies are looking into suing UK banks for hindering the IVA process and therefore promoting an increase in the number of bankruptcies within the UK.
- Calls For Stamp Duty Reform [20.08.07]
New Chancellor Alistair Darling has been called upon by experts in the property industry to give stamp duty a complete overhaul after figures showed that 60% of first-time buyers are having to pay the tax.
- Sub-prime Crisis Affects Global Markets [20.08.07]
It seems that the problems in the US with sub-prime markets may be reverberating around the world. These days it is virtually to limit a large financial crisis to one country.
- Slow down in rise in personal insolvencies [18.07.08]
The rise in personal insolvencies in England and Wales has taken a dip in the second quarter of this year.
- Consolidate your way to financial freedom [18.08.07]
According to one financial adviser in the UK many consumers could find their way to financial freedom more easily by consolidating their existing debts.
- No Rise In Interest Rates - MPC [17.08.07]
In August the Bank of England’s Monetary Policy Committee (MPC) voted to hold UK interest rates at 5.75%, the level set the month before. The 5.75% rate was the highest since March 2001 and represented the fifth rise in twelve months, having taken the base rate from 4.5% last August.
- Homeowners adding value to their homes with loans [17.08.07]
Over recent years secured, homeowners loans have become increasingly popular in the UK, and one of the leading factors in this rise in popularity is the growth in property prices.
- Global Market Crisis [15.08.09]
It seems the US sub-prime crisis has finally spread around the world – with a vengeance. Global stock markets took a hammering last week as a knock-on effect from the problems that started in the United States.
- Number of people in serious debt rockets [13.08.07]
According to a recent report the number of people that are in serious debt has risen by around 30% in the last year alone. Debt levels in the UK have been at the centre of concern for some years, as the debt mountain continues to rise and bad debt levels smash through unprecedented barriers.
- Leading mortgage lender announces mortgage exit fees will be scrapped [13.08.07]
A number of major lenders in the UK have recently announced that they have scrapped mortgage exit fees, which are charged to borrowers when they repay a mortgage or when they close a mortgage account to switch to another lender.