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The BOE announced today that Bank of England Maintains the Bank Rate at 5.75%

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Bank slammed for keeping base rate at 5.75%
The Bank of England monetary policy committee has come under fire for putting the economic stability of the UK at risk by voting against a cut.

Lenders and brokers had hoped that the committee would opt for a 25 basis point cut to ease the current tension between the base rate and three-month Libor which stands at 6.3%.

Ray Boulger senior technical manager of brokerage John Charcol said: “A cut of 0.25% today would at least have pushed three-month Libor back down to about 6%. It would also have started to redress the Bank of England’s policy mistakes, as outlined in last month’s Financial Stability Report, in dealing with the credit crunch.These are all good reasons why the MPC should have cut today. Their failure to do so means that today’s opportunity to mitigate the potentially serious problems building up in the banking system has been lost.”

While Stuart Law, chief executive of property investment company Assetz said: “It's about time that the Bank of England’s MPC saw sense and realised that the clear and present danger to the UK economy from the continuing effects of the credit crunch is more important than the less clear possibility of future pressures upwards on inflation.”

The British Chambers of Commerce said that suppressed domestic inflationary pressures should have meant the committee was in a position to cut the rate.

Economic advisor, David Kern said: “Credit conditions have become tighter since August, both globally and in the UK. The dangers to the economy have worsened and businesses require easier credit conditions without undue delay, to avoid a nasty reversal. We urge the MPC to announce a small interest rate cut in December.”

However, Lloyds TSB Corporate Markets chief economist, Trevor Williams said the MPC was right to keep the rate on hold.

“Although it is true that economic growth may have peaked in the last quarter and is slowing in the current one, there is still some way to go before the MPC would need to wield the knife on base rates. And with money supply still growing, strong labour market conditions and continuing robust economic growth, today was clearly not the day for a cut. The next move will almost certainly be down, but it’s safe to say there won’t be any change until February at the earliest,” he said.

Ref: http://www.ncfonline.co.uk/newsarticle.asp?id=4753


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"Bank of England Maintains the Bank Rate at 5.75%"
Would you call the following 'obscene?'

Capital One Classic Typical 34.9% APR
Vanquis Visa Typical 39.9% APR
Morgan Stanley i24 card charges a whopping annual fee of £275, plus interest at 13.9% a year, for an APR of 57.8%.

This from BestAdvice.net.....
Unless Christmas spending is woefully weak, there is little prospect of rates falling until February.

Julian Sampson
Solicitor
Wright & Wright LLP
www.wrightandwright.com
See my article in Clean Slate magazine

As much as I hate to say this but we are suffering massive economic problems with the price of oil ie look at petrol prices, high Government spending, and house prices are still rising in London.

I think the BOE were right although it does not help those in debt!

They have to keep control of inflation and it is the only weapon they have!

Sorry

As bleak as it all looks I think the current state of the countries finances is what the BOE was planning on, to curve spending - Although I wish they had reduced the rate (it would certainly help my business) I think it is for the general good that it remained at it's current rate.

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LEYBRIDGE LIMITED
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Firm FSA No:313790
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Mike

I have to say that it would help a lot if interest rates are cut and it would have been more prudent if the BOE had not cut a few years ago, the Government had not spent out and kept their borrowing down.

The result is we are now paying for allowing the economy to overheat!

Basically the words from a former Chancellor there will be " no return to Boom and Bust" make me smile because the way i see things the economy is heading for a bust!

For those who can hold on at least 18 months will most probably see quite a reduction in interest rates.

Unfortunatley for the millions in serious debt I really fear for them especially if there are not enough IVA providers out there!

A sorry state of affairs!

Sorry to be depressing!

Hi
I heard that they expect an interest rate cut next month
Regards

Andy Davie
IVA.co.uk Spokesperson

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Andy

To be honest everyone in our trade that I spoke to before today expected at least a .25% cut this month... I am not expecting one now until at least February...

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B*gger me, pass the pills and whisky ![:)]

Aucto Splendore Resurgo.
(7 down, 53 to go)

[:D][:D][:D] olympic_torch

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LEYBRIDGE LIMITED
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Specialising in adverse credit.

Firm FSA No:313790
Personal FSA No:MJB01557

see feedback and testimonials at:
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Please read our Initial Disclosure Document(IDD):
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Decisions about interest rates are made to retain control over inflation.

There's a thousand reasons why it would be desirable that interest rates go down today. Inflation control wasn't amongst them.

Andrew Graveson
Independent Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk