The Bank of England has announced that interest rates are to be kept at 0.5% for the time being, only the 5th month that the rate hasn’t changed since last September. This stall in changing the interest rates highlights how highly the Bank of England is prioritising its attempts to encourage banks to start lending again, therefore boosting credit and raising the ‘nominal spending’ (the cash value of spending) in the economy.
The Bank of England has also injected a further £50bn of fresh money into the economy this month, therefore meaning that £175bn has now been spent on quantitative easing. In a statement, they said that the UK recession "appears to have been deeper than previously thought". Similarly, the European Central Bank (ECB) has kept its interest rates in the eurozone (i.e. those countries who use the Euro) at a record low of 1% for the 3rd month in a row, after it was cut from 1.25% in May, its 7th cut since last October, in an attempt to help restore economic growth in the eurozone.
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Thursday, 6 August 2009
Interest rates held at 0.5% for a 5th month
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Thursday, 9 July 2009
Interest rates held at 0.5% for a 4th month
The Bank of England has announced that interest rates are to be kept at 0.5% for the time being, only the 4th month that the rate hasn’t changed since last September. This stall in changing the interest rates highlights how highly the Bank of England is prioritising its attempts to encourage banks to start lending again, therefore boosting credit and raising the ‘nominal spending’ (the cash value of spending) in the economy. The Bank of England has not injected any fresh money into the economy this month as part of its quantitative easing process, as it wants to allow itself to pause and assess economic data to measure how successful the quantitative easing is going.
Ilona Krohn, principal economic advisor at Greater Manchester Chamber of Commerce, has supported the decision to hold interest rates: “The decision to hold interest rates was widely expected. The pros and cons of quantitative easing are still a major topic of debate among world economists. For the time being, it is important that the Bank of England maintains a transparent and consistent policy in order to restore confidence in the financial system and assist businesses with their forward planning."
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Thursday, 4 June 2009
Interest rates held at 0.5% for a 3rd month
The Bank of England has announced that interest rates are to be kept at 0.5% for the time being, only the 3rd month that the rate hasn’t changed since last September. This stall in changing the interest rates highlights how highly the Bank of England is prioritising its attempts to encourage banks to start lending again, therefore boosting credit and raising the ‘nominal spending’ (the cash value of spending) in the economy. The Bank of England has not injected any fresh money into the economy this month, but it is predicted that £125bn will have been spent on the quantitative easing process by the end of July. A closely-watched survey on the service sector released earlier this week suggested that the recovery may be coming faster than expected. Similarly, the European Central Bank (ECB) has kept its interest rates in the eurozone (i.e. those countries who use the Euro) at a record low of 1% for the 2nd month in a row, after it was cut from 1.25% last month, its 7th cut since last October, in an attempt to help restore economic growth in the eurozone.
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Tuesday, 14 April 2009
Interest rates stay put at 0.5%
After being reduced to 0.5% in March, the Bank of England has announced that interest rates are to be kept at 0.5% for the time being, the first time the rate hasn’t changed since last September. The Bank of England also reported that some £26.4bn has already been injected into the economy, as the Bank continues with its ‘quantitative easing’ lending process. This stall in changing the interest rates highlights how highly the Bank of England is prioritising its attempts to encourage banks to start lending again, therefore boosting credit and raising the ‘nominal spending’ (the cash value of spending) in the economy.
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