Thursday, September 4, 2008

MPC holds UK interest rates at 5%

Bank keeps UK interest rate at 5%

The Bank of England has kept interest rates on hold at 5% for a fifth month as it struggles to deal with a slowing economy and soaring inflation. But with reports signalling the economy is heading for recession, expectations are rising that the cost of borrowing will be cut by the end of the year. Economic growth ground to a halt in the second quarter of this year, its worst performance since the early 1990s. However, inflation is more than double the Bank's target of 2%.

Posted by jack c @ 12:04 PM (1541 views)
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17 thoughts on “MPC holds UK interest rates at 5%

  • Wonder which way Blanchflower voted ?;0)

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  • I think the BBC may have goofed here, should the decision be announced after 12 noon, we all know the decision is fixed over a game of golf but lets try and give the illusion of independence.

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  • Wonder which way Blanchflower voted ?;0)

    I’m not.

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  • @matt_the_hat

    The article was published at 12:14. I know you like to be a bit selective in your choice of data to back up your conspiracy theories, but muddling up BST and GMT just makes you look silly.

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  • I think the BBC may have goofed here, should the decision be announced after 12 noon, we all know the decision is fixed over a game of golf but lets try and give the illusion of independence.

    Be careful you don’t end up in the navel gazing club.

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  • Oooppsss

    still getting used to GMT+1

    There’s no conspiracy, we bring it on ourselves, if we were grown up the politicians could do the right thing, but most people are in it for the short term so lets ditch the pound. Borrow as much as you can real interest rates are now negative!!!

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  • Lets hope Blanchflower resigns in protest good riddence!!!

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  • mark wadsworth says:

    *sigh* The Gummint, oops, the Fully Independent Bank Of England announced that there’d be No Rate Cuts Until 2010 back in May. Just before the next General Election, in other words.

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  • “MPC holds UK interest rates at 5%”

    Gee whizz – earth shattering news.

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  • The news here is that the independent MPC is actually performing worse than the blubbermint would if it still controlled the rates. They singularly failed to stop the runaway housing market (probably because they removed property prices from the CP and therefore the inflation figures). The massive increase in the property market had to, eventually, feed through to inflation through the back door, wage hikes and the like.

    They all too are easily swayed by public opinion and appear to be a re-actionary committee rather than one that CREATES the change. Their ONLY remit is to control inflation. It is NOT being controlled. They have failed, get rid of this ridiculous charade.

    Apart from Danny boy, who simply gets a 1st class return fare so that he can walk in, sit down and say the same thing, how much does this man COST THE TAXPAYER. He’s like the man from friggin Del Monte – he likes to say YES.

    Has anyone collated the votes from the MPC since he became a member – Has he EVER voted any other way (for no reduction or, gad forbid, an increase) ?

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  • mark wadsworth says:

    Here’s a delightful bit that I think we missed from the BBC report on the Halifax report.

    “A spokesman for the Department of Communities and Local Government said that UK house prices were still significantly higher than five years ago”.

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  • “A spokesman for the Department of Communities and Local Government said that UK house prices were still significantly higher than five years ago”.

    That’s ok then if you bought in the spring

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  • Said on CNBC that one member voted -.5% We know who that was by – Mr Blanchflower

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  • And don’t forget that house prices are significantly higher than they were when Norman the Conqueror invaded and at the time of the Black Death and let’s not forget the Crimea War !!!

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  • A side point. It’s interesting to see that the Republican candidate for Vice President takes precedence of the HOUSE PRICE CRASH info from the halifax. I guess there are a serious amount of BBC employees and mejia types absolutely crapping themselves over their property portfolio’s by now…….”Well Kurstie Allsopp said we couldn’t lose!”

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  • Just when is Allsopp going to eat her hat. Choose a large one, Kirsty!

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  • theboltonfury says:

    allsop had a child that weighed 13 pounds. Now that is impressive. It’s the same as what her victims houses are now worth

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