‘Interest Rates’ News
Rate cut is passed on by mortgage lenders
Posted 2008-02-17
A cut in interest rates by the Bank of England will be passed on to mortgage holders, lenders revealed.The Bank cut rates to 5.25 per cent yesterday to reduce the effect of the credit crunch on the economy. UK mortgage lenders then announced they will be handing this down to customers -meaning a £100,000 mortgage will decrease by £16 a month. David Kern, economic adviser to the British Chambers of Commerce, said: “The Bank’s decision to cut interest rates to 5.25 per cent was necessary for the economy. “In the face of worsening global and domestic conditions, a refusal to act would have entailed unacceptable risks.” He added the move is ‘not adequate on its own’ as threats to growth are ‘much more acute’ now than current inflation risks. “We would have welcomed a bold UK move to five per cent,” he added. ...
Read Rate cut is passed on by mortgage lenders
-
Delicious -
Digg -
Reddit -
Facebook -
Stumbleupon
Bank slashes interest rates by a quarter per cent
Posted 2008-02-16
The Bank of England has reacted to slowdown signs by cutting interest rates by 0.25 per cent to 5.5 per cent. Although widely expected, it came as a welcome relief for borrowers and was announced a day after E.On became...
Read Bank slashes interest rates by a quarter per cent
Interest rates ‘to reach 4.5 per cent this year’
Posted 2008-02-15
The UK is set to avoid a full recession and interest rates are likely to fall to 4.5 per cent in 2008, one expert says. Finance gurus at Global Insight also predict interest rates will again fall - to four per cent in the first half of 2009.Howard Archer, a top economist with the firm, said: “We currently forecast interest rates to fall to 4.5 per cent by the end of 2008 and to four per cent in the first half of 2009. “This is based on our assumption that the UK will avoid recession, but will see extended below-trend growth.” He added the company forecasts GDP growth to be limited to 1.8 per cent in 2008 and 2009 - ‘the equal weakest performance since 1992′. The latest interest rate decision is due to be made on Thursday, and, with it currently standing at 5.5 per cent, it is expected to be cut by at least a quarter per cent. ...
Read Interest rates ‘to reach 4.5 per cent this year’
Consumers less confident and ‘in fear’ of inflation
Posted 2008-02-2
UK consumer confidence is taking a beating thanks to worries about the rate of inflation, a report says. The latest consumer barometer from Lloyds TSB shows the number of people expecting interest rates to be higher rather than lower a year’s time went up by two per cent last month. This is the first rise in six months, and the financial services provider says inflation concerns are fostering a culture of worry among consumers. Trevor Williams, chief economist with Lloyds TSB Corporate Markets, says even interest rate cuts may not help allay fears. He said: “As far as consumers are concerned, any respite granted in interest rates today will be short-lived. Even so, if we do see a cut, this will ease the burden of interest payments and as such will help boost economic activity.” ...
Read Consumers less confident and ‘in fear’ of inflation
Rate cut ‘could worsen inflation’
Posted 2008-01-29
Inflation could be enflamed by the Bank of England’s decision to cut interest rates, a price comparison website says. Fool.co.uk said while the decision to lower the cost of borrowing by to 5.25 per cent was ‘not unexpected’, it could make inflation worse in a time of soaring energy bills and oil prices. The site says the Bank’s monetary policy committee seems ready to forgo the need to head-off inflation to try and avert a recession.David Kuo, head of personal finance at Fool.co.uk, said: “However, consumers should be aware of the damaging effects of inflation even if the Bank of England chooses to ignore it for now. In order to beat rising prices, we need to ensure any savings we have will guarantee a better return.” Meanwhile, the Bank predicts demand for secured loans will rise in the first quarter of the year as other credit avenues close off. ...