Low interest rates and less tax to fuel home demand January 27, 2015 The mortgage market saw a slowdown at the end of 2014 but is expected to stage a rebound this year. The number of house purchase approvals was nine per cent higher in 2014 compared to 2013, according to figures released yesterday by the British Bankers’ Association (BBA). However, the value of mortgages for house purchase [...]
As Bank of England minutes reveal a unanimous vote to hold interest rates, should its first hike wait until 2016? January 21, 2015 John Longworth, director general at the British Chambers of Commerce, says Yes The latest MPC minutes make it clear that even the hawks don’t believe there is a convincing case for near-term rises in interest rates, something that UK businesses will applaud. Falling global oil prices, Eurozone uncertainty, sluggishness in emerging markets, and the near [...]
Interest rates to remain at historic lows until 2016 amid falling oil price January 18, 2015 The collapsing price of oil could see interest rates remain at their historic lows until 2016, according to top economists. The UK is likely to grow at 2.9 per cent this year, say the EY Item Club in part thanks to lower oil prices. The group hiked their forecast by 0.5 per cent point since [...]
Bank of England keeps interest rates at 0.5 per cent for 70th month in a row January 8, 2015 The Bank of England's monetary policy committee (MPC) kicked off 2015 by keeping the base rate at 0.5 per cent. It's the 70th consecutive month rates have been held at historic lows, and the last rise was way back in March 2009. We'll have to wait until January 21 to find out who voted for [...]
Cheap mortgages are here to stay as OBR predicts interest rates will remain low December 3, 2014 Interest rates will stay lower for longer, the fiscal watchdog predicted yesterday, because the Bank of England is now not expected to tighten monetary policy until well into 2015. When it last made its forecasts in March, the Office for Budget Responsibility (OBR) predicted the average mortgage interest rate would dip below three per cent [...]
Scottish devolution: Holyrood to get control over income tax and retain right to vote on rest of UK rates November 26, 2014 A cross-party committee of MPs will today propose that the Scottish parliament be handed direct control over billions of pounds of income tax and welfare benefits. Lord Smith of Kelvin will unveil the plans after 11 weeks of secret negotiations culminated last night as representatives from five different political parties put the finishing touches to [...]
Interest rates forecast to remain at record low until 2016 November 17, 2014 Interest rates set by the Bank of England (BoE) might not rise off their record lows until 2016, economists from HSBC said yesterday. HSBC recently offered a 0.99 per cent mortgage rate for an initial two-year period – its lowest ever rate. Meanwhile, political uncertainty, low inflation and weak economic growth are all set to deter [...]
UK needs to raise interest rates now, says Bank of England policymaker Ian McCafferty October 26, 2014 A senior Bank of England (BoE) policymaker has said the UK should begin raising interest rates now, despite low inflation. Ian McCafferty is one of just two members of the bank's Monetary Policy Committee (MPC) to have voted in favour of rate hikes since August. The seven other members warned against a “premature” tightening [...]
BoE’s Ben Broadbent: Low interest rates on government debt are down to savings glut October 23, 2014 Interest rates are not low due to central bank policy, but due to economic factors, Bank of England official Ben Broadbent said yesterday. Broadbent is referring to the interest on government debt as opposed to the interest rate set by the Bank. “I read a lot of economic commentary that says interest rates are low [...]
Bank of England’s Andrew Haldane: Interest rates could stay lower for longer October 17, 2014 The Bank of England's chief economist Andrew Haldane has warned that interest rates may need to be kept lower for longer due the deteriorating state of the world economy. The BoE kept rates at their record lows of 0.5 per cent last week citing concerns over health of the global recovery, lacklustre wage growth in [...]