interest rate

Interest Rates Remain a Mystery for More Than a Third of Small Businesses

Interest Rates Remain a Mystery for More Than a Third of Small Businesses

34% of UK small businesses don’t know what interest rate they currently receive on their surplus funds, according to a report from Aldermore published today. The survey of more than 1,000 small enterprises found that 14% don’t even receive interest on their business savings while 81% hold their savings account in the same bank as their current account. Worryingly, 47% of business owners said they didn’t believe the benefit of any potential returns was worth the hassle of shopping around to get a better deal. Small businesses also aren’t reviewing their accounts as regularly as last year with nearly one in five (18%) admitting they never review their accounts with only one-in-ten (10%) reviewing their accounts more than once every six months. Simon Healy, managing director of sa... »

Bank Rate Stays at 0.5%

Bank Rate Stays at 0.5%

The Bank of England’s Monetary Policy Committee today once again voted to maintain the base interest rate at 0.5% This is the fourth consecutive month that the MPC have kept the base rate at the historically low figure. Whilst there have been sporadic reports that "the worst of the recession is over" Ian McCafferty, the CBI’s Chief Economic Adviser, had a more reserved answer to the MPC’s rate decision; "With the economy and credit conditions still very weak, the Bank’s quantitative easing programme has further to run. That, rather than interest rates, is the MPC’s main concern. "After only five months, it is still too early to determine the effects on the wider economy. So, a further extension through the autumn is needed, and clear commun... »

The rate remains the same

The rate remains the same

> The Bank of England has kept the base interest rate at 0.5% After last month’s rate cut to an all-time historic low the Bank of England’s Monetary Policy Committee now has very little scope to further stimulate the UK’s economy with rate reductions. Whilst the much talked about "quantitative easing" has been introduced in an effort to effectively boost the circulation of money in the economic system, the £26.4 billion injection of funds has yet to make a difference to UK SMEs. The Bank has reportedly said it will inject a further £75 billion of liquidity into the British economy to "oil the gears" of the financial system over the coming months with further reserves should it be needed. »

Base rate cut to record low

Base rate cut to record low

The Bank of England has announced that the base interest rate has been cut to another historic low of 0.5% after last month’s cut to 1.0% By cutting the interest rate to its lowest ever level (again) the Bank of England’s Monetary Policy Committee is running out of tools to stimulate the country’s economy. Another concern is that such low interest rates will affect the banking sector’s profitability and potentially restrict further their ability and willingness to lend money. Pressure will be upon the banks to help Small Businesses with variable rate loans and overdrafts but passing on the benefits of the interest rate cut to their SME customers. However, the much talked about "quantitative easing" is being moved forward. Often referred to as "printin... »

Interest Cut to Historic Low

The Bank of England cut the base interest rate again, this time by 0.5 percentage points from 1.5% to 1.0% The interest rate started at 5.5% in January last year, being cut to 5.25% in february then to 5% in April where the rate remained for half of the year. As the credit crunch took hold and Britain found itself heading toward recession the rates were slashed dramatically in an attempt to assist the economy. Now, at 1%, the UK interest rate is the lowest it has ever been and, meaning savers get poor returns but interest repayments on mortgages etc are considerably lower. Still, banks are loath to lend to Small Business despite the efforts of Government to provide enterprise finance schemes. For your interest here’s a list of the months where the interest rate was dropped over the l... »

Interest Rates down to 2%

As economists forecast the possibility of a deep recession the Bank of England‘s Monetary Policy Committee has, once again, decided to substantially cut interest rates. Today’s decision sees the interest rate fall by a whole 1% to the new base rate of 2%. Last month the MPC took the decision to slash the base interest rate by 1.5%, the greatest rate cut since the BoE was granted independence back in 1997. Ian McCafferty, Chief Economic Adviser at the Confederation of British Industry (CBI)said; “The economy needs a significant monetary stimulus and the Bank has clearly decided this will be best achieved by another big cut in interest rates. What is critical for business and consumers alike is that this reduction is passed on. The economy is stalling, inflation is expected... »

Interest Rates

Call for Rate Cut as Manufacturing Declines

Business groups are calling for a cut in interest rates after official figures showed that British manufacturing output has fallen for the fifth month in a row. The 9 September report from the Office for National Statistics revealed that UK manufacturing output dropped 0.2% between June and July – twice as much as anticipated by economic analysts. Separate figures released on the same day by the National Institute of Economic and Social Research suggested output across the UK economy as a whole fell by 0.2% between June and August. Paris–based think tank, the Organisation for Economic Cooperation and Development, added weight to the belief that the UK economy is already in recession by forecasting that it will shrink by 0.4% in the final three months of the year. Economic advis... »

Bank of England

Rates Still 5%

In a frank interview at the weekend Alistair Darling said that the UK, and other countries, were facing the "worst economic crisis in 60 years". Whether that’s totally true or not, it does paint a grim picture, considering he thinks the economic situation is nearly as bad as it was in the years just after the last World War. What can not be disputed is that credit is hard to come by, inflation is more than twice what the government wishes it to be, the price of oil, gas & electricity is extremely high and so are the costs for food and distribution. Furthermore, consumer confidence is down, property prices are falling and unemployment has increased. Yes, these are challenging times for every UK business from the big corporations to the SMEs. The OECD has predicted negati... »

BoE

Rates Cut to 5.25%

The Bank of England cuts interest rates to 5.25% »