Archive for the ‘economics’ Category
Friday, February 8th, 2008
The UK economy is facing reasonable prospects for growth in the upcoming year. The Bank of England's growth forcecast shows a slight fall in growth. However, if the Housing market continues to fall, this fall in the growth rate may become quite significant. Another factor which may slowdown growth is ...
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Wednesday, September 19th, 2007
When setting interest rates, the primary objective of the MPC is to control inflation. The MPC have an inflation target of CPI 2% =/-1. This is why The Bank of England is concerned with rising inflation. It explains why interest rates may remain high, even if growth slows down.
Central Banks ...
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Friday, June 8th, 2007
Low inflation has important implications for interest rates and hence mortgage payments. Low inflation enables the MPC to keep interest rates low. Despite recent rises in UK interest rates, long term interest rates are much lower than in the early 1990s when interest rates reached 15%. It is also the ...
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