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 February Rate Change ? - 28/01/2007
Following the shock rise in the interest base rate to 5.25% earlier this month, fears of another rise in February have calmed somewhat after it was revealed that the Bank of England committee was split on it's recent decision.
Rates have risen three times now in the past six months and many are worrying about a return to the situation of increased home repossessions as people struggle to meet their monthly mortgage payments.
Interest Rates unlikely to change - 02/08/2006
There is a 75 per cent chance that the Bank of England will vote to keep interest rates unchanged at tomorrow's meeting of the Monetary Policy Committee (MPC), new research claims.
Nationwide's Consumer Confidence Index predicts the probability of a base rate rise as only 25 per cent, as overall consumer confidence remains steady for the third month in a row.
Nevertheless, the index found that confidence in the current economic and employment situation has continued to fall, with 28 per cent of respondents feeling pessimistic about the number of jobs currently available.
"It is almost 12 months since the Bank of England last changed base rate and over that period consumer confidence has stabilised," said Nationwide's executive director, Stuart Bernau.
"However, this more settled environment may not last as people are increasingly concerned about the current economic situation and the number of jobs available both now and over the coming months."
Consumer pressures such as high energy bills, moderate growth in earnings and possible rises in the price of fresh food combined with recent strong economic data may cause the MPC to think about a rate change, he predicted.
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Interest rates jump pre-Christmas - 09/11/2006
The Bank of England today added a further quarter point to interest rates for a second time in recent months. The aim is to try to calm inflation in advance of the Christmas spending rush, an expert has claimed.
Second interest rates rise 'not likely' - 05/09/2006
The Bank of England is unlikely to raise interest rates for a second month in a row when it meets this month, an expert has claimed.
UK economist at Capital Economics, Vicky Redwood, said that another increase in the base rate, which sets interest rates, was "not a done deal", after the bank's Monetary Policy Committee (MPC) raised the rate to 4.75 per cent in August.
September was not a popular month for changing interest rates, she said, as rates were usually changed soon after August's Inflation Report if the report suggested a change was necessary.
"There was little in last month's Inflation Report to suggest a need to raise rates two months in a row. The forecasts based on market interest rate expectations showed inflation to be only slightly above target in two years' time," she explained.
However, any sign that rises in inflation were prompting a rise in inflation expectations or wage demands would probably lead to rates rising again, probably in November, Ms Redwood claimed.
Before last month's change, there was concern that a base rate rise, which would have a knock-on effect on interest rates for loan repayments, could cause more people to struggle with repayments and fall into bad debt.
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