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Interest Rate Predictions

By on October 1, 2012 in interest rates

Predictions for Interest rates in the UK. How the MPC is likely to set interest rates in the coming months.

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Interest Rate Graphs

By on January 18, 2012 in interest rates

Base Interest Rates The Base rate is the rate set by the Central Bank. It is the most important interest rate in the economy because it influences all the other interest rates. If the Central Bank cuts its base rate, it means it is cheaper for commercial banks to borrow from the Central Bank, this [...]

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Historical Interest Rates

By on December 6, 2011 in interest rates, UK housing market

Readers Question: How can I find data on Historical interest rates nominal and real Graph of Interest rates since 1979 – 2011 Base Rates and Commercial Rates   This graph shows how commercial banks do not necessarily follow the base rate changes. The very low interest rates of 2009, gave many commercial banks an opportunity [...]

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2 Year Mortgage Fixed Rates

By on August 14, 2009 in interest rates, mortgages, UK housing market

The fall in base interest rates to 0.5% has yet to be reflected in fixed rate mortgages. Despite continued base rates of 0.5%, commercial banks are already  raising their fixed rate mortgages. Commercial banks have been claiming that the cost of borrowing is going up for them. However, looking at the three month libor (interbank [...]

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Prospects for Interest Rates

By on August 12, 2009 in interest rates

This graph shows the rapid decline in interest rates and inflation in the past couple of years. Some now feel the worst of the recession is over, and if the fragile recovery turns into a stronger economic growth, the interest rate cycle could be reversed with rates returning to levels of 5%. This would have [...]

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How Long Will Interest Rates Stay Low?

By on June 10, 2009 in interest rates, UK housing market

With Bank of England Base rates reaching more or less rock bottom (0.5%). The big question is how long will rates stay so low? Interest rates reached 0.5% in March and have kept low through the summer of 2009. In the experience of Japan, interest rates remained close to zero for over a decade. Basically, [...]

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Borrowing and Future Interest Rates

By on April 24, 2009 in interest rates

Next year, the government will have to borrow at least £175bn. If economic forecasts prove worse than Treasury predicts, borrowing could be even higher. The large scale government borrowing has raised the prospect of future tax rises and spending cuts. What this means is that in 2010 and 2011, the government will bring in tax [...]

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Prospect of 0% Interest Rates

By on February 12, 2009 in interest rates

The Bank of England’s inflation report gives a strong indication that interest rates in the UK could fall to 0 – 0.25%. There is also an increasing likelyhood of quantitative easing – a policy of creating money to avoid the deflationary impact. (B of E report) The UK is facing its deepest recession since the [...]

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Forecasts for Mortgage Interest Rates

By on November 10, 2008 in interest rates, UK housing market

What Will Happen to Mortgage Rates? After the Bank of England’s decision to cut interest rates by 1.5%, there was a predictable scrutiny of the high street banks to see whether they would pass the cut on to consumers. Interestingly, one of the first banks to announce they would pass the cut on was Lloyds [...]

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Interest rates fall 2008 /09?

By on September 16, 2008 in interest rates

Interest rates have become the main tool for influencing the Economy in both the UK and US. Interest rates have a significant impact on all aspects of the economy including: Investment decisions Exchange rates Housing market Inflation and economic growth. The future direction of interest rates, primarily depends upon forecasts for inflation and economic growth. [...]

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