UK interest rates held at 0.5% for years

ColdIron

Mark Carney has announced UK interest rates will be held at 0.5% until the unemployment rate falls to 7%, which is forecast to happen in late 2016. What with the Funding for Lending Scheme due to last until at least Jan 2015 I think we better get used to the new normal of low rates for the foreseeable future

http://www.thisismoney.co.uk/money/news/article-2385921/Rock-rates-stay-unemployment-falls-7--Bank-England-pledges.html

Old_Slaphead

ColdIron wrote: »

Mark Carney has announced UK interest rates will be held at 0.5% until the unemployment rate falls to 7%, which is forecast to happen in late 2016. What with the Funding for Lending Scheme due to last until at least Jan 2015 I think we better get used to the new normal of low rates for the foreseeable future

http://www.thisismoney.co.uk/money/news/article-2385921/Rock-rates-stay-unemployment-falls-7--Bank-England-pledges.html

Unless unemployment falls more quickly than expected

Ifts

When will UK interest rates rise? Carney ties 0.5% rate to unemployment - but the markets pencil a rise for late 2014:

http://www.thisismoney.co.uk/money/news/article-1607881/When-UK-rates-rise.html

veryintrigued

Old_Slaphead wrote: »

Unless unemployment falls more quickly than expected

Or if inflation rises too much!

.....The unemployment threshold will hold unless inflation levels threaten to rise too fast or it poses a significant threat to financial stability.......

blinko

GBP USD has rallied, I'm not sure why though when interest rates are going to be so low for so long....

atush

Certainty?

blinko

If interest rates are low, this will reduce the attractiveness of the currency

sabretoothtigger

We werent belle of the ball in any case. USA is our largest trading partner still I think so we are more happily a gruesome twosome

This is all fake anyway. Effective Rates are negative, its just a case of how much. If we reach -10% then they will act & if not, we stick with the status quo

Nobody wants to dance alone, so no western country wants to break this Danse Macabre. The latest attendees being the Australians with their lowest rates ever

Minrich

and still those who were prudent suffer still . When will there be some good news for the retired and those seeking income from themoney they have saved ? It was the speculators that caused alot of the problems were in now and still policy continues to reward those who really shouldn't be . The "Help" they are giving home buyers will have such a negative effect when they withdraw it that this will also continuie for years . Overinflated prices for everything too , which can only be bad for an economy ??

Brian8888

It's the attempt of the western governments to slowly reduce their debt levels (via hidden inflation) and penalize the saver in the process.

meunier

Brian8888 wrote: »

It's the attempt of the western governments to slowly reduce their debt levels (via hidden inflation) and penalize the saver in the process.

What goes around comes around SURELY .... AT SOME POINT.