News - UK Interest Rate 2008
UK Interest Rates for
2009
Interest Rate down to record low 2.0 %
4th December 2008
The monetary policy committee has dropped the base rate by another
percent to 2% - The recession gathers speed apace with almost 11,000
jobs lost in the preceding week. Rates are now the lowest since 1951,
a far cry from the 17% high under Margaret Thatcher.
Interest Rate down to 3.0 %
6th November 2008
The monetary policy committee has dropped the base rate by an unprecedented
one and a half percent to 3%. The largest drop in nearly 30 years took
the rate to its lowest in almost half a century.
Early signs are that banks and building societies are following Chancellor
Alistair Darling's calls to pass the rate cut on borrowers.
More
on the base rate cut from the BBC
8th October 2008
The Bank of England monetary policy committee dropped the UK base rate
by half a percent to 4.5% today. Inflation has taken a back seat to
a very real risk of recession and the need to restore confidence in
the banking system.
With the financial turmoil of the past few days in mind, the Bank of
England has dropped the base rate in conjunction with the governments
£50 Billion bank bail-out in an effort to boost confidence. Further
drops are likely over the coming months as the BOE seeks to stave off
a full blown recession with some pundits seeing the rate below 4% in
the new year.
4th September 2008
With inflation more than double the Government target of 2% the Bank
still sees recession as the lesser of two evils. The MPC took the cautious
approach yet again and despite many predictions of a drop left rates
unchanged for a fifth month.
10th July 2008
The Bank of England monetary policy committee again voted to retain
the UK base rate at 5%. Worries about a forthcoming recession were outweighed
by the need to keep inflation down and the bank chose to opt for caution
rather than attempt to boost the economy with a rate cut.
5th June 2008
Bank retains base rate at 5% despite slowing economy. The Bank of England
monetary policy committee voted to retain the UK base rate at 5% in
the face of increased pressures from fuel and food price rises which
have pushed inflation almost 1% over the governments 2% target.
10th April 2008
Interest rates cut by a quarter of a point to 5%, as the Bank of England
tries to counteract the widespread credit crisis on the housing market.
7th February 2008
The Bank of England's monetary policy committee have today decided
to cut the UK interest rate by a quarter point to 5.25%.This is the
second reduction in three months, and thought to be in response to the
slowing down of the housing market and consumer spending. Many analysts
believe today's reduction is necessary for the UK economy and are predicting
further cuts in the interest rate this year.
10th January 2008
The Bank of England's Monetary Policy Commitee voted to leave the UK
base rate unchanged at 5.5% amid fears of growing inflation.The decision
came in the wake of mixed signals from the high street with Sainsbury's
and John Lewis reporting a good Christmas but Marks & Spencers and
DSG who own Curry's and PC World flagging up profits warnings.
6th December 2007
Good news for borrowers as the Bank of England's Monetary Policy Commitee
cut the UK Base rate by a quarter percent down to 5.5% - the first drop
since August 2005. The reduction was seen by the City as an essential
response to prevent the slow down in the UK economy turning into an
out-and-out slump. Recent reports by two major UK building societies
indicated a further slide in house prices and retailers were reporting
a quieter than normal high street.
November - December
2007 Base Rates
October 2007 Base Rates
September 2007 Base Rates
August 2007 Base Rates
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