Interest rates will increase according to King
June 17, 2010
The governor of the Bank of England, Mervyn King, has recently warned that the base interest rate will increase as and when the Monetary Policy Committee deems it necessary. If the base rate increases many could see their loan and mortgage interest rates and repayments increase, which could prove financially devastating for some people.
The base interest rate was dropped to its lowest level in the history of the Bank of England at just 0.5 percent in March of last year as the government took steps to try and revive the flagging economy. It has been at this low level ever since, and the low base rate has been welcomed by a number of industry groups and consumers.
However, Mr King has now made it clear that whilst the base rate is currently at its lowest level ever this is not something that can be sustained and that the base rate will be increased as and when the Monetary Policy Committee believes that this is necessary and justified.
King also hit out at those that have accused the central bank of being complacent for failing to take any action when it comes to the base rate, stating that doubt should not be cast over the central bank’s determination to tackle soaring inflation and that the most likely course of action to tackle this would be interest rates before other factors were considered.
King said: ‘There will come a time when our task will be to manage the exit from such an abnormal degree of monetary stimulus. The Monetary Policy Committee will not hesitate to withdraw the current degree of stimulus when we judge that is necessary.’
- Fears over home repossessions exaggerated The governor of the Bank of England, Sir Mervyn King, has recently voiced his opinion about rising fears over repossession levels in the UK, branding them as exaggerated. Many are concerned that the UK is
- King wants to reduce public borrowing The Governor of the Bank of England, Mervyn King, has recently spoken out stating that he wants to see the government put greater effort into reducing public borrowing. Whilst there were proposals that had been
- Income and outgoings set to cause consumers problems The governor of the Bank of England, Mervyn King, has recently highlighted how below inflation wage rises coupled with soaring food, petrol, and living costs are set to cause many households severe problems over the
- Ban for fraudulent mortgage broker The UK's financial regulator, the Financial services Authority, has taken action against yet another broker than has been found to have been engaging in fraudulent activity. Since the start of this year a number of
- Inflation to get worse states Bank of England Over recent months the nation has seen the rate of inflation spiral out of control, and in July inflation levels hit an all time high of 4.4%, which is the highest since records began. This
Comments
Got something to say?