Bank Of England Keeps Base Rate Unchanged
45689
Finance > Loans
Sep 7, 2007
Mark_Dawson
Bank Of England Keeps Base Rate Unchanged
The Bank of England's monetary policy committee (MPC) has voted to keep interest rates at 5.75 per cent for the duration of September, it has emerged. At its monthly meeting in London, the committee decided to keep the base rate of borrowing consistent for the second consecutive month following the hike of 0.25 percentage points actioned in July. In a statement released today (September 6th), the Bank claimed that the disruption seen in the financial market, caused in part by the sub-prime crisis in the United States, meant that it was too early to increase interest rates as it continues to assess how recent events could impair the availability of secured loans and other forms of credit to both companies and individuals. Commenting on the announcement, David Kuo, head of personal finance at the Motley Fool, claimed that although the news was "not completely unexpected" due to recent turbulence in the financial markets, borrowers should take advantage of the hold by making as many overpayments as soon as possible into loans and other types of borrowing, should another rate rise take place. He said: "Homeowners can draw some comfort from the Bank's decision to leave interest rates unchanged. In fact, there have even been suggestions that the Bank may cut interest rates to avert a slowdown in the economy. However, a recent report from the Bank of England suggests that a rate cut in the near future is unlikely given that five interest rate hikes in the last year have failed to dampen demand from consumers to borrow more". "But whatever the Bank does in terms of future interest rates, borrowers can take active steps now by overpaying their loans today. While the Bank of England involves itself in complex economic analysis, consumers should instead stick to simple arithmetic. This states that every pound you overpay on your loan will go to decrease the amount borrowed rather than go towards interest payments." Meanwhile, Trevor Williams, chief economist for Lloyds TSB Corporate Markets, claimed that a rise would not have been suitable given the current economic climate. He pointed out that banks have been increasingly cautious about lending money to one another, which in turn has seen them steadily increase their interest rates. Consequently, Mr Williams suggested that the MPC hold would be the best way in which to get these rates to fall. The economist asserted that interest rates are likely to have reached their peak, pointing to a "cooling" property market, a slow in earnings growth and falling inflation as various indicators that the committee will not look to raise the rate of borrowing in the near future. However, Mr Williams added that the MPC is likely to wait for the "pain" of the recent credit crisis to ease before deciding on whether to adjust the base rate, with any moves unlikely to be "for a while yet". Although the committee has voted to keep the base rate consistent, which is likely to be welcomed by borrowers as their level of monthly repayments will stay the same, consumers should not take too relaxed a view about the importance of paying back loans. Earlier this year, a study carried out by MoneyExpert showed that more than 1.38 million loan repayments have been missed during the first six months of 2007. Chief executive Sean Gardner claimed the figures act as "another warning" of the financial stress being felt by consumers across the country.
Mark Dawson writes for the the Loan Arrangers where you can apply online for low rate loans, you can also compare loans online, bad credit loans applications welcome.
send email to Mark_Dawson
Write a Review
Add to My Favorite
Refer it to Friend
Report Article
Other links owned by this user
With the clocks going back and the signs of winter undoubtedly setting in, the call of warmer climes is getting increasingly pressing for a number of Brits.
Category:
Young homeowners are finding themselves in increasing levels of debt, new figures show.
Category:
More Britons need to be educated when it comes to managing their money, an industry expert has claimed.
Category:
Britons could be putting themselves under unnecessary financial strain, new statistics have suggested.
Category:
British households are under evermore financial pressure, according to the publication of new figures.
Category:
Homeowners may see that their day-to-day finances are set for a shock, according to new reports.
Category:
Men are struggling the most with their money management, according to the publication of new figures.
Category:
Millions of Britons are unclear as to how much they are being charged for going into the red in their bank accounts, new figures reveal.
Category:
With constraints on their finances predicted to rise over the coming weeks, consumers could be well advised to make sure that their monetary situation is in sufficient shape to cope with an increase in payments, an industry expert has asserted.
Category:
Consumers appear to preparing evermore for their financial future, it has been suggested.
Category:
A complacent attitude towards their finances could see many Britons struggle with money as they get older, new figures highlight.
Category:
Moves to improve financial education and help more low-income consumers access competitively-priced loans and other forms of borrowing have been welcomed by one industry body.
Category:
The nation is set for a 'financial hangover' as the end of the year approaches, according to the publication of a new report.
Category:
Homeowners are coming under increased financial pressure, new figures indicate.
Category:
An ever greater number of women in Ireland are developing ill health due to difficulties with managing their money, a new set of figures have revealed.
Category:
Britons are increasingly looking to their families for financial support, a new study shows.
Category:
Grandparents are generally not saving for their grandchildren's financial future, it has been suggested.
Category:
Britons could be set to face unexpected financial difficulties in later life, new figures show.
Category:
More than a million Britons over the age of 55 could be set for financial hardship in later life, the results of a new study have suggested.
Category:
Those considering buying one of the new 57 registration cars are being advised to consider their purchase with care.
Category:
Other links at Finance > Loans
Purchasing a car is a big investment. It is also an exciting experience especially for first time car buyers. With all the excitement, many car buyers often make wrong decisions because they lack the information and sometimes due to impulsiveness.
Category:
To get a house, get a car, have a credit card, and basically legally exist in the United States, you need to have credit. And if you want to have the best opportunities for success, you're going to need GOOD credit. Yes, you did see those words 'Good Cred
Category:
Secured homeowner loans are loans that are secured against the home of the borrower, and therefore are only available to homeowners.
Category:
Site Sponsor
Directory Statistics
Articles: 68285
Categories: 501
Yahoo Entertainment
