Bank of England set to hold interest rates

09-04-2009

Bank of England set to hold interest rates
The Bank of England is expected to hold interest rates at its historic low of 0.5 per cent later today.

Analysts claim further cuts are unlikely as the monetary policy committee (MPC) has already expressed concerns as to how very low interest rates would affect the profitability of lenders, sandwiched between maintaining higher savings rates and low borrowing rates.

The main attraction from the decision from the monetary policy committee (MPC) at 12:00 BST today will be how the policymakers are dealing with their new quantitative easing tool.

The chancellor Alistair Darling has initially allowed the MPC to create £75 billion for the purpose of buying assets to stimulate the economy.

Experts predict interest rates could remain at 0.5 per cent even into next year.

Howard Archer at IHS Global Insight said: "We suspect that interest rates are set to stay at 0.5 per cent well into 2010 as we believe that GDP will contract through this year before the economy hopefully stabilises in early 2010 and then starts to gradually recover," said

"The UK clearly currently remains deep in contraction territory with a return to growth still looking some way off."

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Del.icio.us Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Automotive
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
Health / Beauty
Hotel / Catering / Restaurants
HR / Recruitment
Insurance / Pensions
International / Overseas
IT / Internet
Legal
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Telecommunications
Transport / Logistics
Travel / Tourism / Leisure