Archive for the ‘interest rates’ Category
Friday, February 8th, 2008
Yesterday, the Bank of England cut interest rates by 0.25%. The good news is that most mortgage lenders have been swift to pass on the rate cut to their consumers. The last time the Bank cut interest rates, in 2007, from 5.75% to 5.5% my mortgage lender never passed on ...
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Wednesday, February 6th, 2008
The difficulty with predicting mortgage interest rates is that there are 2 things to take into consideration.
Predictions for the Bank of England's base Rate
Predictions for Lenders standard variable rates.
Due to the global credit crunch, mortgage lenders are struggling to gain sufficient finance for mortgage lending. This shortage of funds is ...
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Thursday, January 24th, 2008
With the US economy heading towards recession, it is likely that this year will see a cut in UK interest rates.
As a general rule, UK interest rates often follow closely US interest rates. There is not a perfect correlation but often the trade cycle of the US and UK converge.
This ...
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Tuesday, October 9th, 2007
Given the recent uncertainty in financial markets, the Bank of England took a cautious option to "wait and see"
Before the sub prime crisis affected the UK, many thought interest rates in the UK, would increase to 6% and possibly higher.
However, with the slow down in house prices and a growing ...
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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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