New Year Interest Rate Freeze

Following the usual speculative to-ing and fro-ing regarding the Bank of England’s Monetary Policy Comittee decision on the interest rate, the MPC has decided to freeze the interest rate at 5.5%. After mixed results in the High Street this Christmas, with Seasonal Sales at 3 year Low, retailers have been particularly keen for an interest rate cut to boost the spending power of consumers. The TUC had also called for a quarter percent cut in rates to boost economic growth with other quarters calling for a full half percent cut in rates. Add to that increasing inflationary pressures with the inflation rate at 2.1%, a little over the government’s target figure of 2%, plus the recent rate cuts in the US and the fact that the US may or may not be in or heading toward a recession, dep... »