{"id":162,"date":"2007-09-06T14:28:26","date_gmt":"2007-09-06T14:28:26","guid":{"rendered":"http:\/\/www.the-finance-zone.co.uk\/economy\/uk-interest-rates-kept-at-575\/"},"modified":"2007-09-06T14:28:26","modified_gmt":"2007-09-06T14:28:26","slug":"uk-interest-rates-kept-at-575","status":"publish","type":"post","link":"https:\/\/the-finance-zone.co.uk\/index.php\/2007\/09\/06\/uk-interest-rates-kept-at-575\/","title":{"rendered":"UK interest rates kept at 5.75%"},"content":{"rendered":"\n\n\n
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Inflation is below the Bank of England’s target rate<\/div>\n<\/div>\n<\/td>\n<\/tr>\n<\/table>\n

The Bank of England’s interest rate-setting committee has kept the cost of borrowing unchanged at 5.75%.<\/strong>But unusually, the Monetary Policy Committee (MPC) released a statement with its decision – a move which more usually accompanies a change in rates.<\/p>\n

The statement made clear that the MPC had considered the effects that the recent credit crunch could have on the rate of inflation.<\/p>\n

Inflation currently stands at 1.9%, which is below the target of 2.0%. <\/p>\n

Rates have not risen since July, but that was the fifth rise in 12 months.<\/p>\n

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Earlier in the year, many economists had predicted that rates would rise to 6% by the end of 2007, but the current problems in financial markets are making that less likely.<\/p>\n

“It is too soon to tell how far the disruption in financial markets will impair the availability of credit to companies and households,” the MPC statement said.<\/p>\n

Credit crunch<\/strong><\/p>\n

Any movement in interest rates would also have been surprising after the Bank of England took steps on Wednesday to help out banks that have found themselves short of cash.<\/p>\n

The credit crunch was sparked by the crisis in the US sub-prime mortgage sector, caused by record levels of defaults in the face of higher American interest rates.<\/p>\n

Sub-prime mortgages are offered to people with inferior credit records or those on low incomes.<\/p>\n

The sub-prime problems spread to the wider global loans market as banks, which were exposed to sub-prime debt, become far more cautious about whom they lent money to.<\/p>\n

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Inflation is below the Bank of England’s target rate The Bank of England’s interest rate-setting committee has kept the cost<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","footnotes":""},"categories":[12],"tags":[],"class_list":["post-162","post","type-post","status-publish","format-standard","hentry","category-economy"],"_links":{"self":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/162","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=162"}],"version-history":[{"count":0,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/162\/revisions"}],"wp:attachment":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=162"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=162"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=162"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}