Articles - Santander comments on Bank of England's 0.50% interest rate


Santander comments on Bank of England's decision to hold interest rates at 0.50 per cent

 Barry Naisbitt, Chief Economist at Santander, said:

 "After three Monetary Policy Committee (MPC) members again voted to raise rates last month and with inflation at 4.5% being well above its target rate, today's decision to hold rates is likely to have been another split vote.  The recent relatively weak indicators of output growth and low consumer confidence are likely to have played a major part in persuading MPC members to keep rates on hold.  But the split on the MPC indicates that these remain difficult times.

 "The Bank of England's latest Inflation Report pointed out that inflation is expected to rise further in the months ahead, with the recently announced energy price rises pushing inflation up.  But with the economy as a whole showing a flat picture over the past two quarters, the MPC has been ‘looking through' this anticipated rise and expects inflation to fall back next year.  So the majority of members have been voting to hold rates.  Later this month there will be interest in the MPC minutes to see how the new member of the MPC voted, especially since he replaced Andrew Sentence who had been voting for a 50 basis points rise in rates."   

Back to Index


Similar News to this Story

One more year so can we stop thinking about IFRS17 for now
On 14 November 2018, the IASB announced a deferment of the IFRS17 implementation date by a year, with some still calling for a two year delay.You co
Allowing for climate related risks
Allowing for climate related risks when setting long term financial assumptions
Mean Reversion in Equities
A common argument in favour of equity investments is that, even though they go down, they will bounce right back up again. Commentators may advise β€œri

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.