lundi 6 avril 2015
UK interest rates set to remain on hold for coalition's entire term
Posted on 10:38 by nice news
The Bank of England is expected to leave interest rates on hold at 0.5% this week, marking the first time in more than half a century that a government has enjoyed unchanged borrowing costs for its entire term.
Interest rates were slashed to a record low of 0.5% in 2009 in a bid to stem the fallout from the global financial crisis. They have remained there ever since, with ultra-loose monetary policy the backdrop throughout the coalition’s time in office beginning in 2010.
Despite relatively solid economic growth over the past year, policymakers are not expected to raise rates until well after the May election.
The last time interest rates were on hold for a longer stretch was between 1940 and 1951 when the UK was ravaged first by war and then by reconstruction efforts, as it was led by a succession of governments (including Clement Attlee, who was prime minister between July 1945 and October 1951). Bank rate was cut from 4% to 2% during 1939 and then stayed there until a hike to 2.5% in November 1951.
Bank of England Bank Rate 1694-2015
Interest rates were slashed to a record low of 0.5% in 2009 in a bid to stem the fallout from the global financial crisis. They have remained there ever since, with ultra-loose monetary policy the backdrop throughout the coalition’s time in office beginning in 2010.
Despite relatively solid economic growth over the past year, policymakers are not expected to raise rates until well after the May election.
The last time interest rates were on hold for a longer stretch was between 1940 and 1951 when the UK was ravaged first by war and then by reconstruction efforts, as it was led by a succession of governments (including Clement Attlee, who was prime minister between July 1945 and October 1951). Bank rate was cut from 4% to 2% during 1939 and then stayed there until a hike to 2.5% in November 1951.
Bank of England Bank Rate 1694-2015
UK interest rates set to remain on hold for coalition's entire term
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