Property Search
UK interest rates maintained at record low of 0.5%
The Bank of England has kept UK interest rates on hold at a record low of
0.5% for the 16th consecutive month.
Read More
UK interest rates kept at 0.5% for 15th month
UK interest rates have been kept on hold at a record low of 0.5% for the 15th month in a row. Read More
Hips scrapped by coalition government
The coalition government has suspended the use of Home Information Packs (Hips) by home sellers. Read More
House sales see spring bounce, figures show
House sales in the UK are continuing to revive after their post-Christmas slump, figures have suggested. Read More
News
UK interest rates kept at 0.5% for 15th month
UK interest rates have been kept on hold at a record low of 0.5% for the 15th month in a row.
The Bank of England also decided not to inject any more money into the UK economy under its policy of quantitative easing (QE).
Meanwhile, a Reuters poll of 61 economists suggested the central bank would not raise rates until next year.
Trevor Williams, chief economist at Lloyds Banking Group Corporate Markets, said the decision was "no shock at all".
"The story is the economy is still very weak," he said.
The Bank uses interest rates to try to curb inflation, but Mr Williams said: "The target was never meant to be hit every single month. It's a medium-term target. And I think they're quite right to hold off.
"I think [inflation] will fall back later in the year."
However, last month a leading economic think tank warned that rates would have to rise to control inflation.
The Organisation for Economic Co-operation and Development (OECD) called for the Bank of England to raise the cost of borrowing to 3.5% by the end of 2011.
From the BBC website
http://news.bbc.co.uk/1/hi/business/10284129.stm