|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |   
10th of August 2011
|   Banking  |   Insurance  |   Property  |   Mortgages  |   Economy  |   Investments  |   Credit Cards  |   Debt  |   Loans  |   Pensions  |   Companies  |  

UK interest rates to remain on hold today

Bookmark and Share

by Kay Mitchell

The Bank of England’s Monetary Policy Committee (MPC) commenced its two-day rate-setting meeting yesterday and interest rates are expected to remain on hold at the record low of 0.5% – where they have been since March 2009.

The bank is presented with a dilemma as it comes under pressure to raise interest rates to combat stubbornly high inflation – which is currently running at more than double the 2% target.

However, the economic recovery appears to be losing momentum so the central bank has said it is reluctant at this stage to lift interest rates as it could be harmful to the recovery.

The majority of economists believe rates will remain at the historic low until the first quarter of 2012.

However, many believe a fresh round of quantitative easing (QE) will be required at some point in the near future to stimulate the economy.

The Bank of England will announce its decision today at 12:00pm.

Discuss this in the Finance Markets forums

Story link: UK interest rates to remain on hold today

News posted: August 4, 2011

Financial Services:

Related financial stories to: UK interest rates to remain on hold today:
Previous: «
Next: »

Visited 489 times, 8 so far today

No Comments »

No comments yet.

RSS feed for comments on this post.

Leave a comment

Tags: , , , , , , two-day meeting


Economy News feed Economy News

All Financial News feed All Financial News