MSE News: UK Base Rates unchanged at 5%

Former_MSE_Dan

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UK Base Rates unchanged at 5%

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Lokolo

Expect them to hold for a month or 2 before lowering them again. However, with this weather I expect people to spend over save so maybe sooner :cool:

Aegis

I think it largely depends on the markets. With the easing of monetary policy we've seen this year, the MPC's measure of inflation (CPI) has risen to 2.5%, 25% above their target. As such, they might now be faced with pressure from the government to keep the interest base rate at 5% if they can.

If the markets drop again, they might feel it's necessary to cut the rates again to stimulate the economy again.

ManAtHome

Aegis wrote: »

they might now be faced with pressure from the government to keep the interest base rate at 5% if they can.

I suspect that pressure from the govt will be downwards regardless of inflation (unless anyone's seen a quote from broon-troosers or btl-badger about doing anything other than cutting rates).

Anyone else noticed that almost every statement (from any organisation) about interest rates or the economy now has to have "to help hard-working families" tagged on - seems like the phrase of 2008...

aardvaak

Anyone else noticed that almost every statement (from any organisation) about interest rates or the economy now has to have "to help hard-working families" tagged on - seems like the phrase of 2008...

Yes I have - it's sickning is'nt it - don't they care about us investors who need interest as our only income?