No change in interest rates for January

January 27, 2010

There has been no further change in interest rates for the month of January. An announcement was made by the Bank of England following the Monetary Policy Committee meeting for January, where it was confirmed that the base rate was to remain at 0.5 percent, where it has been since March 2009. The current base rate is at its lowest level in the central bank’s three hundred and fifteen year history.

Some officials have said that the base rate is set to remain at its low level for the foreseeable future, and that the decision to keep the rate on hold has come as no surprise. Many industry and manufacturing groups have said that they are happy about the decision, stating that whilst the UK is said to be recovering in terms of its economy the doubt over the sustainability and strength of the recovery means that the economy is still very fragile.

It has also been claimed that the MPC is currently in wait and see mode, as it awaits data from the February inflation report. One economist said that this was set to be a very difficult year for policy makers, as there would be some very tough decisions to be made with regards to both the movement of the base interest rate and with regards to any further extensions on the quantitative easing scheme.

There was another announcement from the Bank of England following the MPC meeting confirming that it was maintaining the £200 billion level of the quantitative easing programme, but also stating that the programme would remain under review. Most industry experts have predicted that the programme will not be extended further in the foreseeable future.

One economist stated: “The environment for the MPC now becomes much more challenging. Firstly it has to decide whether to provide more QE next month - it is possible, but we doubt that it will.”

  • Mortgage approvals up for second month in a row
    • According to industry reports mortgage approvals in the UK have increased for the second month in a row in January, with a slight increase compared to mortgage lending levels for December. The number of mortgages
  • Mortgage borrowing falls due to stamp duty
    • According to a mortgage industry group the level of mortgage borrowing for the month of January has been affected by the increased threshold when it comes to stamp duty in the UK. During the recession
  • More people overpaying on their mortgages
    • According to a recent report the number of people that are overpaying on their mortgages is on the rise, with many taking advantage of the recent base interest rate cuts and using them to try
  • Fewer long term fixed rate mortgages available in UK
    • A recent report has claimed that there are fewer long term fixed rate mortgages now available, with a smaller selection of lenders now offering this type of mortgage loan. In January of last year figures
  • BoE holds interest rates for fourth month
    • Following on from the November 8th Monetary Policy Committee meeting the Bank of England has decided once again to keep interest rates on hold at 5.75%. This is the fourth consecutive month that the Bank

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