Tag Archives: Bank of England Updates

Bank Gives £75 Billion Boost to Flatlining Economy Latest Articles, Property Investment News, Property Market News

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"31 months of 0.5% interest in a row"

Interest rates are to stick at 0.5% for another month as the Bank of England tries to revive the flatlining economy with another £75 billion of quantitive easing.

The decision by the bank’s monetary policy committee leaves the official interest rate at the record low level for 31 months in a row.

Effectively, triggering a new round of quantitive easing will have the same effect as dropping interest rates and calming inflation.

But the bank warns the cost of living is set to get worse before savers and spenders see any improvement.

“Inflation is likely to rise to above 5% in the next month or so, boosted by already announced increases in utility prices,” said the statement.

“But domestically generated inflation remains contained and inflation is likely to fall back sharply next year as the influence of the factors temporarily raising inflation diminishes and downward pressure from unemployment and spare capacity persists.”

The bank also fears the sluggish economy will drag down the economy next year, pushing inflation below the target 2%.

“The squeeze on households’ real incomes and the fiscal consolidation are likely to continue to weigh on domestic spending, while the strains in bank funding markets may also inhibit the availability of credit to consumers and businesses,” said a statement from the bank.

Inflation rose to 4.5% in August due to the continued effect of January’s rise in VAT to 20%, higher energy prices and the increasing cost of imports due to currency rate fluctuations.

John Walker, the Federation of Small Businesses chairman, said: “With growth revised downwards, pumping more money into the economy through quantitative easing is welcomed.

“However, it is important that in an attempt to boost short-term demand that small businesses can directly benefit from this cash injection and that the banks use it to decrease the cost of credit and to increase the availability of lending.”


Bank of England Agents’ Summary of Business Conditions September 2011 Latest Articles, Property Market News

Bank of England LogoThe Bank of England has released their business summary for September. They say the market continues to be ‘subdued’ and first time buyers are still having trouble reaching the first rung of the ladder. They also believe the prospect of high rents has attracted more buy to let investors.
You can read and download the full report here. (To download, right-click and select save as.)


Bank of England Agents’ Summary of Business Conditions August 2011 Latest Articles, Property Market News

Bank of England LogoBank of England have released their Agents’ Summary of Business Conditions for August, and they have found a ‘subdued’ housing market except for in London. Again confirming the numerous surveys published each month.

Read and download the Bank of England Agents’ Summary of Business Conditions August 2011

What do you think of their findings?


Bank of England Agents’ Summary of Business Conditions June 2011 Latest Articles

Bank of England LogoAs we reported earlier, the Bank of England have released their Agents’ Summary of Business Conditions for June 2011.

To read the report in full, click here (opens in a new tab to the Bank of England website)

Your comments and feedback are always greatly appreciated, please see below. Continue reading Bank of England Agents’ Summary of Business Conditions June 2011


BoE find buy to let still on the up Latest Articles

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Buy to let up as housing market is subdued

The Bank of England’s Agents’ summary of business conditions June findings have further emphasized the sluggish activity in the housing market, but buy to let continues to thrive.

The smaller properties, usually expected to be bought by first time buyers, have been picked up by buy to let investors capitalising on the market of renters. Continue reading BoE find buy to let still on the up


Bank of England is Googling housing market data Latest Articles, Property Market News

Globe representing internet search

Bank of England researchers are relying on Google for housing market data

The real worth of official housing market statistics has received another knock with the revelation that Bank of England researchers are relying on Google for their data.

The government already spends taxpayers’ money on producing rival housing statistics from the Land Registry and Communities and Local Government Department. Continue reading Bank of England is Googling housing market data


Gross mortgage lending increased 12% in May Latest Articles, Mortgage News

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Gross Mortgage Lending up 12% in May

According to new data from the Council of Mortgage Lenders, gross mortgage lending totalled an estimated £11.3 billion in May, which represented a 12% increase from the £10.1 billion lent in April, and was 1% higher than in May 2010. Gross mortgage lending includes lending for both house purchase and remortgage. Continue reading Gross mortgage lending increased 12% in May


Bank of England holds rates at 0.5% again Latest Articles, Property Investment News, Property Market News

Bank of England LogoThe Bank of England voted to keep base rates at 0.5% for another month and to keep quantative easing at £200 billion.

The rate has not moved since March 2009 and quantative easing has remained locked at £200 billion since November 2009.

Few financial pundits are surprised by the decision as in the past few weeks, dissent within the bank’s monetary policy committee has been diluted by the replacement of interest rate hawk Andrew Sentance with moderate Ben Broadbent. Continue reading Bank of England holds rates at 0.5% again


UK interest rates may not rise for years, says BoE governor Latest Articles

The Bank of England interest rate may hover around 0.5% for at least another two years because of a weak economy and overwhelming personal debt.

Bank governor Mervyn King has hit out at interest rise hawks speculating that rates must soon go up in a speech to a finance committee at the European Parliament. Continue reading UK interest rates may not rise for years, says BoE governor


Bank of England Credibility Crisis? Latest Articles

Wrtten by Neil Patterson – Partner of The Money Centre, following his visit to a meeting at The National Skills Academy in Norwich for The Bank of England Quarterly Regional Inflation Report.

Do you think the Bank of England have lost credibility in dealing with the economy? That is an interesting question and one raised at the regional Quarterly Inflation Report by The Bank of England themselves. Continue reading Bank of England Credibility Crisis?


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