You are here: Home - Saving & Banking - News -

Bank governor hints interest rates could fall further

0
Written by: Christina Hoghton
01/07/2016
The Bank of England governor has hinted that its Base Rate may be cut in the coming months.

Since the result of the EU Referendum there has been speculation that interest rates in the UK could be cut to stimulate the economy.

And governor of the Bank of England Mark Carney made it clear this was something he considers likely in the coming months.

In a speech to business leaders in London he said: “In my view, and I am not prejudging the views of the other independent MPC members, the economic outlook has deteriorated and some monetary policy easing will likely be required over the summer.

“The committee will make an initial assessment on 14 July and a full assessment complete with a new forecast will follow in the August inflation report. In August, we will also discuss further the range of instruments at our disposal.”

Experts have suggested that a 0.25% rate cut is now on the cards for August, which would be the first change to Base Rate in over seven years.

The interest rate currently stands at 0.5% while consumer price inflation remained unchanged at 0.3% in May.

Recession in the wings?

Before the Brexit result Carney had stated that a leave result could “materially alter the outlook for growth and inflation”.

But he tried to reassure the public there is a clear plan in place to deal with the fallout of the referendum result and that the UK economy was extremely flexible. He said: “The Bank of England has a plan to achieve our objectives and by doing so support growth, jobs and wages during a time of considerable uncertainty.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
House prices rise in June

June house price growth nudges upwards, but the market is expected to cool, according to a lender.

Close