‘Interest Rates’ News

Pressure to cut Interest Rates

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Posted 2007-12-6

The Bank of England is seeing pressure to bring down the current loan interest rates. Since August 2006, interest rates have increased five times and this caused credit crunch in the summer in spite of this rise bring controlled in June.  With the Monetary Policy Committee’s (MPC) current meeting, there is an expected drop in interest rates from 5.75% to 5.5%. This drop is caused by sharp growth in the Libor rate.  Analysts like Reuters feel that the MPC is forced to balance a “sharp economic slowdown against rising price pressures”.  Global Insight’s Howard Archer states that this month’s rate decision is one of the biggest calls to cut down interest rates. ...

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