Interest rates rise further to 5.25%, albeit Bank of England expects inflation to fall

The Bank of England’s Monetary Policy Committee (MPC) has this lunchtime increased interest rates by 0.25% to 5.25%. 6 of the 9 members of the Bank’s MPC voted for a 0.25% rise, 2 members favoured a 0.5% rate increase, with one member voting for rates to remain unchanged. The latest interest rate rise, the 14th […]

Bank of England raises interest rates by 0.5%

The Bank of England’s monetary policy committee (MPC) has this lunchtime increased UK interest rates by 0.5%, taking rates to 2.25%. Five members of the MPC voted to increase interest rates by 0.5%, with three members favouring a 0.75% increase, and one member favouring a 0.25% increase.  Before the meeting, there had been speculation, that […]

Bank of England Governor warns against inflation matching pay rises

Following the decision by the Bank of England’s Monetary Policy Committee to raise interest rates yesterday, the Bank’s governor has warned people of the consequences of pushing for inflation busting pay rises. Speaking on the BBC Radio 4 ‘Today’ programme this morning, Andrew Bailey said, “My key point is that if inflation becomes embedded and […]

Interest rates see their biggest rise in 27 years

The Monetary Policy Committee (MPC) of the Bank of England has this lunchtime announced that it is increasing interest rates by 0.5% to 1.75%. This is the biggest rise in interest rates for 27 years. At its meeting on 3 August 2022, the MPC voted by a majority of 8–1 to increase Bank Rate by […]

King raises prospects of further ‘quantitative easing’

By Peter Wozniak Mervyn King has intimated that the government may have to engage in more “emergency measures” to lubricate the economy, on the day that the comprehensive spending review is announced. Speaking yesterday, Mr King left open the prospect of the central bank engaging in another round of “quantitative easing”. He said the Bank […]

Bank figure calls for more quantitative easing

By politics.co.uk staff A second round of quantitative easing is needed to stave off a potential double-dip recession, a member of the Bank of England’s monetary policy committee (MPC) has said. Comments by Adam Posen to the Hull and Humber Chamber of Commerce, Industry and Shipping raised the prospect of a three-way split on the […]

King eyes more Bank powers

By Alex Stevenson Governor Mervyn King called for more powers for the Bank of England in the wake of the last year’s financial crisis. He used his speech to the Lord Mayor’s banquet at Mansion House in the City to argue that the Bank’s statutory responsibility cannot be met through monetary interventions alone. In an […]

Govt ‘may pay price’ for bank bailout

The government could end up making a loss on its investment in the UK banking sector, the deputy governor of the Bank of England has warned. Sir John Gieve also admitted that the Bank knew of unsustainable lending but failed to act. Speaking to BBC’s Panorama, Sir John said: “This is a major storm we […]

Interest rates cut to five per cent

Interest rates have been cut to five per cent, as the Bank of England reacts to slow growth in the UK economy and house price falls. Lenders are now under pressure to pass on the 0.25 per cent cut to lenders, with analysts and borrowers expecting the reduction. High London interbank offered rates (Libor) has […]

Inflation up at 2.5 per cent

Inflation has continued to rise above the government’s target and is now at its highest level for nine months. The Office for National Statistics places the consumer price index measure of inflation at 2.5 per cent, after rising from 2.2 per cent in January. This has been driven largely by rising gas and electricity prices, […]