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News Tag: Base rate

May 10, 2012

BoE holds interest rates and stops quantitative easing

by Jan Harris
BoE holds interest rates and stops quantitative easing
The Bank of England is holding the base rate at 0.5 per cent and has decided not to extend its quantitative easing (QE) programme following a £50bn boost to the economy in February. The UK interest rate has now remained at 0.5 per cent for three years, despite high levels of inflation. Consumer Prices Index inflation currently stands at ...




March 14, 2012

Virgin Money hikes credit card interest rates

by Jan Harris
Virgin Money hikes credit card interest rates
Virgin Money has increased the interest rate on credit cards for some of its customers from 16.8 per cent to 24.9 per cent. Following criticism of the move, the bank unsympathetically told the customers to either accept the increase, which amounts to nearly 50 per cent, or pay off their balances. The rates on balance transfers have also been increased, from ...




November 11, 2011

Low base rate could cost savers £43bn

by Jan Harris
Low base rate could cost savers £43bn
Campaign group Save our Savers today revealed the cost to savers of the Bank of England’s decision to hold the base rate at 0.5% for the 33rd successive month. The group estimates that the low interest rate combined with a retail price index at 5.6 per cent, its highest level for 20 years, and a consumer prices index rate of ...




August 4, 2011

Base rate held at 0.5%

by Gill Montia
Base rate held at 0.5%
The Bank of England’s Monetary Policy Committee (MPC) has opted to keep the base rate at 0.5% in August, as widely expected. The rate has remained at its historic low for well over two years and earlier predictions of a rise this autumn lost credibility once UK economic growth slowed to 0.2%, in the second quarter. According to a recent BBC poll, 26 out ...




May 5, 2011

Base rate held at 0.5%

by Gill Montia
Base rate held at 0.5%
The Bank of England’s Monetary Policy Committee has voted to maintain the base rate at 0.5% in May, as widely expected. The Bank's quantitative easing (asset purchase) programme will also be maintained at its current level of £200 billion. The base rate has remained unchanged since March 2009, despite inflation running at 4%, double the Government’s 2% target. However, the Governor of the Bank of ...




May 3, 2011

Interest rates to remain low

by Gill Montia
Interest rates to remain low
Low interest rates look set to continue, with the Governor of the Bank of England having warned that “massive” economic challenges faced by high levels of debt would only be worsened by rate hikes. Addressing the European Parliament’s Systemic Risk Board yesterday, Mr King said: “The economic consequences of high-level indebtedness now would become more severe if rates were to rise.” The Bank of ...




January 13, 2011

Base rate held at 0.5%

by Gill Montia
Base rate held at 0.5%
The Bank of England has announced that the base rate will remain on hold at 0.5% in January. Low interest rates are to continue despite the Consumer Prices Index measure of inflation increasing to 3.3% in November, well above the Bank's 2% target, and likely to increase further with today's rising commodity prices and January's VAT increase to 20%. However, the news will be ...




July 26, 2010

Remortgaging relief as interest rates “pinned to the floor” until 2014

by Gill Montia
”Remortgaging
Mortgage borrowers will be pleased to hear that interest rates could be "pinned to the floor" until 2014. The prediction comes in the latest report by respected economic forecaster, Ernst & Young Item Club, which at the same time acknowledges that high energy prices and the VAT rise due in January will keep inflation above the Government's ...




May 13, 2010

Economy improving, Santander claims

by David Masters
Economy improving, Santander claims
Britain's economy is on the road to recovery, Santander has claimed. Barry Naisbitt, chief economist at Santander UK, pointed out that economic growth during the fourth quarter of 2009 has been revised from 0.1% to 0.4%. He added that the economy has continued growing during 2010. "Some recent indicators, particularly survey indicators of output, are showing a more positive picture of economic activity," Naisbitt said. "GDP growth ...




April 22, 2010

Base rate setters unanimous in April

by Gill Montia
Base rate setters unanimous in April
The Bank of England's Monetary Policy Committee has published the minutes of its April rate-setting meeting which reveal that the decision to keep the base rate at its historic low of 0.5% was unanimous. The minutes state: "All members agreed that the events of the past month had not been significant enough to substantially alter their views of the medium-term outlook for ...




April 20, 2010

UK inflation up again to 3.4%

by Gill Montia
UK inflation up again to 3.4%
The UK's official rate of inflation rose to 3.4% in March, up from 3% in February and again exceeding the Government's target of 2%. The rate, which is based on the Consumer Prices Index (CPI) and therefore excludes housing costs, was on the wrong side of expectations as it nudged towards the 14-month high of 3.5% recorded in January. According to the ...




January 27, 2010

Many SVRs “disjointed” from base rate

by Gill Montia
”Many
The collapse of the remortage market as borrowers coming to the end of fixed-rate deals opt to remain on reversion rates, is prompting lenders to raise their standard variable rates (SRVs). According to Moneyfacts.co.uk some borrowers on SVRs have benefited from the record low 0.5% base rate but others have not been so lucky. The financial website's spokesperson, Michelle Slade, says: "Many ...




January 22, 2010

Are lenders loosening their purse strings?

by David Masters
Are lenders opening their purse strings?
Interest rates on personal loans are finally starting to fall. The average interest rate on the top ten loan deals has fallen to 8.35%, the lowest level since the Bank of England reduced the base rate to 0.5% last March. When the Bank of England first lowered the base rate, mortgage and current account providers followed suit, while personal loan rates detached themselves ...




November 5, 2009

Base rate held at 0.5% plus £25bn boost for UK economy

by Gill Montia
Base rate held at 0.5% plus £25bn boost for UK economy
The Bank of England's Monetary Policy Committee has kept the base rate at 0.5% in November, as widely expected. The historically low rate has been extended for the eighth successive month, in efforts to keep borrowing as cheap as possible as the UK struggles on in recession. In addition, the Bank has announced that it will pump another ...




September 10, 2009

Consumers see few benefits from low base rate

by David Masters
”Consumers
Consumers have seen very little benefit from the Bank of England holding its base rate at a record low of 0.5% for six months, a consumer advice site pointed out this week. Interest rates on savings accounts have dropped, while rates on mortgages, credit cards, and personal loans have continued to rise, said Moneyfacts.co.uk. Research by the site found interest rates ...




August 26, 2009

Barnsley launches 5.4% e-bond

by David Masters
”Barnsley
Barnsley Building Society has launched a range of new Online Bonds paying interest at a fixed rate of up to 5.4%. The three, four, and five year bonds pay a gross/AER rate of 5%, 5.15%, and 5.4% respectively. Minimum balance to open the bonds is £100, and maximum is £500,000. Sarah Lawrence, Barnsley's senior product manager, encouraged savers to "act quickly" because the bonds could be ...




August 25, 2009

Rates soaring on personal loans

by David Masters
”Rates
Consumers taking out a personal loan are "paying through the nose" due to soaring interest rates. Banks are now charging an average APR of 10.32% on personal loans even though the Bank of England's base rate has been held at a record low of 0.5%. This compares to an average personal loan APR of 8.71% in 2004. "Despite the Bank of England slashing Base Rate ...




August 20, 2009

Expert predicts mortgage “scramble” as rates rise

by David Masters
Expert predicts mortgage
Homeowners will be forced to "scramble around" for good value fixed-rate mortgages in the future as interest rates "fly up", an industry expert has warned. Jacqueline Thornton, financial planner at Re-Financial Planning, said householders that are currently happy to benefit from currently low-priced standard variable rate mortgages will struggle to find a reasonably priced fixed-rate deal when the Bank of England ...




August 18, 2009

SVRs preferred in low-rate climate

by David Masters
SVRs preferred in low-rate climate
Homeowners increasingly prefer to stick with a standard variable rate (SVR) mortgage rather than taking out a fixed-rate deal. Research by Unbiased.co.uk found 27% of homeowners are now on an SVR mortgage, compared with 23% earlier this year. A quarter of those on an SVR mortgage said they have no immediate plans to switch to a fixed-rate deal. "While in the past it could be ...




July 29, 2009

Mortgage lenders profit from low base rate

by David Masters
Mortgage lenders profit from low base rate
Banks are pocketing extra cash rather than passing on lower interest rates to mortgage customers, a Daily Mail investigation revealed this week. Homeowners are paying an average of £1,788 per year more than they should be as banks use the historically low base rate of 0.5% to shore up their ailing coffers. Twelve months ago mortgage rates were just 0.5% above the ...