Home » Bank of England

Bank of England

Bank of England keeps base rate at 0.5%

by Lee | Fri, 11/09/2009 - 09:57

The monetary policy committee (MPC) for the Bank of England has decided to hold the base interest rate at 0.5% for the 6th month in a row.

The decision does not come as a surprise to the industry and some experts believe the rate will stay at this low figure until next summer. Good news for borrowers but not so good for savers.


Think tank predicts house prices to fall for 2 more years

by Lee | Wed, 22/07/2009 - 11:34

According to a report produced by the National Institute of Economic and Social Research the house price slump will persist until mid 2011 despite recent signs of a turnaround.

The report said that the temporary rise in prices is probably the result of limited supply. An Economist from the NIESR went on to say "There has been talk of stabilisation and some recovery in the housing market, but we don't think this is the case. We only see growth in the housing market returning in 2012, "


Diminishing interest rates leave UK savers confused

by Chris | Mon, 06/04/2009 - 21:40

Over 22.4 millions (51%) of savers in the UK say they have no idea what level of interest they currently earn on their main account, as the last six base rate cuts in six months have seen their savings diminish.

A report issued by Uswitch.com, an impartial online and telephone based comparison and switching service, also revealed that 21.1 million savers (48%) can not recall what savings interest rate they were earning when they opened their main account, and for those with more than one savings account, 39% do not know the exact rate they are getting.


Mortgage approvals increase again

by Lee | Tue, 31/03/2009 - 14:50

The Bank of England confirmed yesterday that the amount of mortgages approved in February was 37,937 which is an increase of 19% from January. Some believe this increase suggests that a pick-up in sales could be on the cards.

37,937 loans is the highest amount since May last year according to the Bank of England and is the second increase in a row after January's figures were up. It suggests that the large drops in property prices and the reduced interest rates are starting to bring back interest in the market.


Bank of England reduces rate by half a percent

by Lee | Thu, 05/03/2009 - 13:25

The Bank of England’s Monetary Policy Committee today voted to reduce the current interest rate by 1/2 a percent which brings it down to 0.5%. This move is aimed to help home owners and buyers but will harm savers.

In addition the Bank of England (BoE) will undertake a programme of asset purchases of £75 billion financed by the issuance of central bank reserves. This effectively means putting £75 billion into the system and hopefully boosting lending. This policy is known as quantitive easing, it has not been tried in the UK as of yet.


Mortgage lending levels drop over 60% in January

by Lee | Mon, 02/03/2009 - 16:58

The Bank of England have recently reported a drop of over 60% in mortgage lending for January which brought it down to one tenth of it's levels twelve months ago.

During the month, net lending was at £690 million which is down from £1.79 billion in December. The Bank of England started keeping these statistics in April 1993 and this is the second lowest month recorded by them.