Bank keeps UK interest rate at 5%

September 4, 2008

BBC reports

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.

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Interest rates steady at 5%

July 23, 2008

Interest rates steady at 5%

BBC reports on the decision by the Bank of England to keep interest rates at 5%.

The majority of Bank of England policymakers voted to keep rates steady at 5% at its July meeting, but one voted for a cut and another for a rise.

The surprise split underscores the challenge faced by the Bank’s Monetary Policy Committee (MPC) as it balances slowing growth with rising inflation.

Most businesses would have been looking for a cut in interest rates as rising food and fuel costs eat into consumers’ disposable income. Cutting interest rates would reduce credit and mortgage costs. Cutting interest rates would also reduce businesses financial costs if they had been borrowing.

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Inflation hits 3.8%

July 15, 2008

BBC reports on the eleven year high inflation figure of 3.8%

Rising food and fuel costs pushed UK inflation up to an 11-year high of 3.8% in June from 3.3% in May, figures show.