No change for Interest Rates
The heads that be at the Bank of England have decided to keep the current base interest rate as it as, so it remains unchanged at 5.5% for the next month at least, if not longer.
Retailers have recently reported poor sales numbers for Christmas 2007 and were hoping for an interest rate cut to try and combat the consumer retail slowdown that was evident pre and post christmas time.
If they had dropped the base rate, it could have increased financial confidence for consumers and businesses. So why did they not drop the base rate? By dropping the base rate there was the worry of risking added pressure for fuel prices, as we are currently experiencing an increase in prices of oil, gas and electricity which then creates higher energy, transport and food bills.
The decision to keep the rate at 5.5% was possibly a close run thing. It has been speculated however that despite rates remaining unchanged, they will possibly be dropped by a quarter or even half a percent next time the Bank of England makes a decision which will be 7th February.
For more information on the Bank of England, including all past and present rate changes, visit their website www.bankofengland.co.uk.
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