Tag: interest rate

Mortgages more affordable for new borrowers

Mortgages more affordable for new borrowers

Although mortgages are at their most affordable for 15 years, approvals are at an all-time low. A new report from the Halifax reveals that payments on mortgage loans now account for around a quarter of take-home pay, due to record low interest rates of 0.5 per cent and weak house prices in many areas. The […]

August 28, 2012 More
National Savings reduces rate to safeguard competition

National Savings reduces rate to safeguard competition

National Savings & Investment is cutting the interest rate on its Direct Saver account from 1.75% to 1.5% with effect from today, because the account is too popular. Government-backed NS&I has already substantially exceeded its target to raise £2bn from savers in the 2011/12 financial year and now needs to slow the rate of deposits […]

January 25, 2012 More
Household incomes to fall for fourth consecutive year

Household incomes to fall for fourth consecutive year

UK households face a typical £780 drop in disposable income this year, the BBC has reported. A study by Deloitte, seen by the broadcaster, argues that tax rises, government spending cuts and higher commodity prices will force inflation above its current 4% level. The financial services firm therefore predicts that 2011 will see real earnings […]

May 3, 2011 More
Bank of Japan leaves interest rates on hold

Bank of Japan leaves interest rates on hold

As widely expected, the Bank of Japan (BoJ) has today left interest rates in the range of zero to 0.1%, in a bid to boost the economy following the twin disasters which hit the north-east part of the country last month. The country is battling to restore calm after an 8.9 magnitude earthquake and tsunami […]

April 28, 2011 More
Interest rate hike to be delayed after services data

Interest rate hike to be delayed after services data

According to economists, yesterday’s services sector figures could result in the delay of interest rate hikes. Growth in the UK’s closely-watched service sector slowed in February, figures revealed yesterday. The sector accounts for around 75% of Britain’s economic output. The Chartered Institute of Purchasing and Supply (CIPS)/Markit purchasing managers’ index (PMI) fell to 52.6 in […]

March 4, 2011 More
Bank of Japan keeps interest rates at record low

Bank of Japan keeps interest rates at record low

The Bank of Japan (BoJ) has today left interest rates at almost zero, in a bid to boost the economy and continue its battle against deflation. The Japanese recovery has been faltering of late and exports, a crucial driver for economic growth, continue to slow. In addition, a strong yen could be damaging for the […]

December 21, 2010 More
People’s Bank of China surprises with interest rate rise

People’s Bank of China surprises with interest rate rise

The People’s Bank of China has today surprised markets after hiking interest rates – the first such move since 2007. The Bank has increased the one-year yuan lending rate from 5.31% to 5.56%, and the one-year yuan deposit rate to 2.5% from 2.25%. The move comes in a bid to fight stubborn inflation, as well […]

October 19, 2010 More
Ministers consider higher interest rate on student loans

Ministers consider higher interest rate on student loans

A higher education funding review is likely to see a shake-up in the way interest is charged on student loans. The review, by Lord Browne, suggested a variable interest rate on student loans was a favoured option. Currently, students pay back their loans when they earn over £15,000 a year, at a low interest rate. […]

October 11, 2010 More
UK interest rates and QE remain on hold

UK interest rates and QE remain on hold

The Bank of England’s Monetary Policy Committee (MPC) has today elected to keep UK interest rates on hold at the historically low level of 0.5% – where they have been since March 2009. Furthermore, the Bank opted not to inject any more funds into the economy via its quantitative easing (QE) scheme – introduced to […]

October 7, 2010 More
Report reveals lenders not passing on base rate cuts

Report reveals lenders not passing on base rate cuts

The Bank of England’s Quarterly Bulletin has revealed that High Street banks have not been passing on base rate cuts in full. Interest rates have been held at the record low of 0.5% since March 2009 (when the country was in the midst of its worst recession in decades), but despite this, banks are not […]

September 20, 2010 More
Indian inflation rate eases to 8.5% in August

Indian inflation rate eases to 8.5% in August

India’s inflation rate fell last month to its lowest level since January, Government data showed today. Headline inflation eased to 8.5% in August from a revised 9.8% in July – however, this partly due to a change in the way the index is calculated. The new index includes a wider range of consumer goods, such […]

September 14, 2010 More
Mortgage lenders hold out on large deposits

Mortgage lenders hold out on large deposits

Despite a rise in the number of mortgage deals on offer, a large deposit remains essential in securing a competitive loan, both for house purchasers and remortgagers. According to research by Moneyfacts Group for the BBC, the number of mortgage products available has risen 66% so far this year, to 2,351. However, the financial researcher […]

August 3, 2010 More
India raises interest rates to combat inflation

India raises interest rates to combat inflation

The Reserve Bank of India (RBI) has raised its key interest rate from 4% to 4.5% in a bid to combat rising inflation. It is the fourth such increase this year and economists had only expected a rise to 4.25%. Inflation rose to 10.55% in June and the latest interest rate hike is a fresh […]

July 27, 2010 More
Sainsbury’s bumps Easy Saver rate to 2.7%

Sainsbury’s bumps Easy Saver rate to 2.7%

Sainsbury’s Finance has boosted the interest rate on its Easy Saver account for new customers. Interest on accounts opened after 25th June 2010 will be paid at 2.7% Gross AER, an increase of 0.2 percentage points on the previous rate. The 2.7% rate will be paid to new customers for 12 months provided they maintain […]

June 30, 2010 More
Interest rate hikes take their toll on Australian consumers

Interest rate hikes take their toll on Australian consumers

A survey by Westpac bank and the Melbourne Institute has revealed that Australian consumer confidence has been hit by the recent hike in interest rates. The study, which questioned 1,200 people, found that consumer morale in May fell for the second consecutive month – by 7% to a reading of 108. This represented the biggest […]

May 19, 2010 More
Students to face higher interest rates on loans

Students to face higher interest rates on loans

The Russell Group, which represents 20 elite, research-intensive universities, has suggested that graduates may have to start paying back their student loans earlier and at a higher rate of interest, in order to prevent a major funding crisis. Following an official review of student finance and fees, the group warned that the financial sustainability of […]

May 14, 2010 More
Savers “disillusioned” with ISA returns

Savers “disillusioned” with ISA returns

ISA investors are “disillusioned” with the returns they are receiving on their savings, Barclays claimed this week. The bank blamed the frustration on historically low interest rates. The 0.5% base rate has caused many investors to rethink their approach to the financial marketplace, Barclays said. Research by the bank found more than two-thirds (72%) of […]

March 17, 2010 More
Savings continue to fall as consumers opt to repay debt

Savings continue to fall as consumers opt to repay debt

Figures published today show that people in the UK continue to repay debt as the incentive to save remains low in the current historically low interest rate environment. According to the Building Societies Association (BSA), its members withdrew more money than they saved for the ninth consecutive month in November. The BSA said there was […]

January 4, 2010 More
PwC expects hike in bad credit card debts

PwC expects hike in bad credit card debts

A study called “Precious Plastic” by accountancy firm PricewaterhouseCoopers (PwC) has found that while there has been a “cooling passion” for credit cards, bad credit card debts could jump as much as 9% of all outstanding balances by the end of 2010. According to Richard Thompson, a partner at PwC, over the last year, “there […]

November 9, 2009 More
Santander to close 6% current account

Santander to close 6% current account

Santander plans to discontinue the 6% current account at its UK banks. The 6% + 6% offer, which pays new Abbey and Alliance & Leicester customers 6% interest on their current account and on monthly savings, will close later this week. Savers taking maximum advantage of the offer could earn nearly £250 interest in the […]

September 2, 2009 More