For the 16th month in a row, interest rates in the UK were held at a record low of 0.5% by the Bank of England. This news didn’t necessarily come as a great surprise to those who keep their fingers on the pulse of the UK economy, but it has raised concerns with people who are worried about inflation. Such people were hoping for an increase in interest rates, which they believe will help curb or slow inflation. Their concerns are backed up by the latest Consumer Prices Index, which hit a 17-month high of 3.7% in April. It fell in May to 3.4%, but continues to be well above the target rate of 2% that the Bank of England wants. (more…)
Posts Tagged ‘mortgage rates’
Interest Rates in UK Held at 0.5%
Friday, July 16th, 2010Mortgage Default Rate Drops Unexpectedly
Friday, July 16th, 2010According to the latest Credit Conditions Survey by the Bank of England, defaults on mortgage loans dropped unexpectedly during the April to June period. Although the rate had been dropping since last year, experts had been expecting it to hold steady during the second quarter of 2010; it is uncertain why the rate dropped. However, analysts expect the rate to remain unchanged during the third quarter of this year. Considering that previous predictions have already been proven wrong, though, it’s clear that things could go either way. If the number of defaults continues to drops, of course, it could signal a slow recovery for the economy. These days, everyone is looking for good news concerning the economy and many will see this as one example. (more…)
