You are here: Home - Uncategorized -

UK interest rates ‘could stay at 4.5%’

0
Written by:
24/07/2006

Forecasting group the Ernst & Young Item Club has concluded that the Bank of England has enough room to manoeuvre to let interest rates stay at 4.5%, with rising oil and commodity prices creating slack in the economy.

Increasing personal debt levels have also meant that consumers have cut back on their spending, so inflation is likely to slip back below the 2% level, which is the Government’s stated benchmark target.

Commenting on the effect of interest rates on manufacturing exports, chief economic adviser to the Item Club, Peter Spencer, said: “Until UK manufacturers manage to break out of the vicious circle of low profitability, low investment and a lack of cost control, the medium-term prospects for exports look poor.”

Related Posts

Tagged:

Tag Box

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.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

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:
Government ‘should keep its pension promise’

MPs have asked the Government to honour its pledge to restore the link between the State pension and earnings, a...

Close