The information contained within the following news articles have been pre published. The articles were published on the dates indicated and the information contained within these issues include references to taxation, legislation, regulation and other issues or concerns that may no longer apply
Bank of England considers interest rates
We heard last week that the Bank of England was more than likely going to keep interest rates at 0.5% until 2017. This record low rate is the basis of all other banks’ interest rates meaning that the cost of borrowing should stay low.
Although many banks are struggling these days, the returns from lending are more beneficial than encouraging everyone to save that much more (but you should be doing that too). The more people borrow the more the economy grows, whether it is for a mortgage, home improvements or a car, all these purchases go on to help our services, manufacturing and home sales within the UK and ultimately help our gross domestic product (GDP).
Today the Bank of England’s policymakers will be meeting about whether they should make any adjustments to the interest rates or whether quantitative easing is a better route to take.
The UK’s recession appears deeper than previously thought so it is up to the BoE to take steps towards alleviating the pressure on the consumer and encouraging us to spend more. Read the article from BBC news here, or to talk to an adviser about your finances, contacts us.