Bank of England Interest Rates Stay at 0.5% Again
No Change For Interest Rates For Period 3
With the economic growth not showing any major signs of improvement, The Bank of England has decided to show some extra support by keeping the base rate of interest at 0.5% for now, in hope that this will improve sales and trust on the build up to Christmas.
First Six Months
At the turn of the year, there was a very bleak outlook on how things would pan out with the first quarter of the year well below what was anticipated. The second quarter was a different story completely, with retail sales on the up and a growth of 1.2%.
Since then, the early stats being bumbled around are not so good, with data pointing to a not so sharp increase compared to what happened in period two.
Recently a survey was constructed within the manufacturing and and services sectors, and these figures have pointed towards a certain point in the wrong direction.
This means that the Monetary Policy Committee (MPC) which is constructed of a nine strong personel, have left the rates unchanged since March 2009 when the historic low was first witnessed.
Although this doesn’t paint an extremely pretty picture, indicators are still suggesting that the UK economy is still perfectly on track even though it may seem a little bumpy and spazmodic.
Will this mean that they place the Monetary Policy on the back burner for a while longer, or take us by complete surprise and start to rain in the changes earlier than later to avoid any extra sudden problems in the future?
