Archive | interest rates

Interest Rate Graphs

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 […]

Continue Reading 1

Historical Interest Rates

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 […]

Continue Reading 3

2 Year Mortgage Fixed Rates

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 […]

Continue Reading 3

Prospects for 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 […]

Continue Reading 0

Borrowing and Future 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 […]

Continue Reading 0

Prospect of 0% 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 […]

Continue Reading 5

Interest rates fall 2008 /09?

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. […]

Continue Reading 5

Powered by WordPress. Designed by WooThemes