Interest Rates Remain Unchanged
The people in charge of setting interest rates at the bank of England have announced that the interest rates will remain unchanged from the record low of 0.5% this week ? the same announcement they?ve been making for three months in a row.
There have been no plans to do anything major to refresh the economy which is still in crisis, both at home and around the world. This is in contrary to their announcement last month which announced an injection of ?50 billion into the economy under the policy of quantitative easing. Under the scheme, the Bank of England will essentially print money in order to increase supply and stimulate the struggling economy.
This week other surveys have predicted better news showing what are perhaps the first few tentative steps towards economic recovery. UK house prices have also rose by over 2% from April to May according to UK Bank and Estate Agent Halifax.
Despite this, many experts predict that interest rates are set to remain low for the immediate future which is bad news for savers.
In Europe, the central bank has made a similar decision to keep the slightly higher 1% interest rates as they are for the time being, although business groups have called upon the bank to increase their plans for their own ?125 billion quantitative easing scheme.
Economic advisor Roger Bootle told the BBC: ?I think that monetary policy will remain exceptionally loose for a prolonged period.?