The Bank of England has cut rates from 5.5 per cent to 5.25 per cent in a move designed to aid a seemingly slowing UK economy . The move was not as drastic as some had called for, perhaps unsurprisingly given the changing aims of the country’s leading economists whose focus has shifted from economic growth to controlling inflation . Inflation stood at 2.1 per cent at the turn of the year, a seemingly positive figure as the target is 2 per cent, though with rising energy and food prices, inflation is expected to rise in the coming months.
These rising prices are seen as the reason for a more conservative move by the Bank of England in comparison to their American counterparts. The Federal Reserve recently slashed rates from 4.25 per cent to 3 per cent.
It is now up to the banks to reduce their rates so that the desired effects of the decrease can be occur. Signs as positive so far, with several leading banks including Halifax, Nationwide, Abbey, Natwest and the Royal Bank of Scotland stating they will reduce their standard variable rates .
Bank of England Cuts Rates
Bank of England Cuts Rates
Tue, 12 Feb 2008
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