interest rate rise

Interest Rate Rise Must Wait for Recovery

Interest rates must not rise while “recovery remains slow”, say experts Business groups have urged the Bank of England to keep interest rates down in May, as new figures for the UK economy confirmed only slow growth in the first quarter of 2011. The figures released by the Office for National Statistics show that the UK economy grew by 0.5% in the first three months of 2011. The growth reduced the likelihood of a double–dip recession after the economy contracted 0.5% in the final quarter of 2010. However, business groups remained cautious and continued to urge the Bank of England not to raise interest rates, despite the high rate of inflation — currently 4% (CPI). Confederation of British Industry director–general, John Cridland, said: “Growth of 0.5% in the first quarter is in line ... »

Interest Rate Rise Unlikely Until 2011

Interest Rate Rise Unlikely Until 2011

Interest rates are likely to remain unchanged for the next two years and may stay below two% until 2014, the Centre for Economics and Business Research (CEBR) has predicted. The CEBR has forecast that UK interest rates are likely to stay at 0.5% until 2011, as the Government seeks to stimulate the economy by making lending more attractive to borrowers. »