Wednesday, 23 March 2011

Bank of England - Interest Rates


Hi everyone,

Continuing on from yesterdays post of the UK inflation figures, the Bank of England has decided to keep interest rates at its historic low of 0.5%.

The policymakers voted to keep the rates the same to keep in line with their medium term goals.


--

Thanks for the comments yesterday, I'll explain some of these terms:

The CPI (Consumer Price index) and RPI (Retail Price Index) is how the Government (UK in this sense) measures inflation; they measure the price of household goods and compare them year on year.

Raising the Interest rates means there will be a higher cost in borrowing money, yet the value of the currency will increase, increasing the incentive to save (a savings account will have a higher interest rate).

Interest rates were cut in many countries (USA, UK e.g.) to stimulate economic growth because of the banking crisis.


Regards, Sam
Posted by at

17 comments:

  1. Jay23 March 2011 at 10:23

    thanks for the info. you should continue to give little lectures as you post. :D

    ReplyDelete
  2. Xuian23 March 2011 at 10:37

    yes, keep incentive to borrow and go into debt!

    on another note, catch the Nikkei on the rebound if you aren't too poor like me )

    ReplyDelete
  3. Insider3323 March 2011 at 17:11

    I wonder how big are the interest rates elsewhere in Europe?

    ReplyDelete
  4. Xuian23 March 2011 at 21:29

    I also noticed portugal is on the verge of collapse and will need international rescue soon

    ReplyDelete
  5. Bassislv23 March 2011 at 22:14

    thanks for explaining those terms, I'm close to understand your posts now

    ReplyDelete
  6. jamierod.rodriguez23 March 2011 at 22:32

    It's like I'm in Econ 101 after reading your posts again :)

    ReplyDelete
  7. Biff Tanner23 March 2011 at 22:47

    great info here

    ReplyDelete
  8. Lhosreiff23 March 2011 at 23:21

    thanks for the info

    ReplyDelete
  9. after323 March 2011 at 23:22

    Insightful and informative. Thanks for sharing.

    ReplyDelete
  10. RootYourDroid.net24 March 2011 at 01:06

    wow i might just move to England to buy my first house with rates like that!

    ReplyDelete
  11. Tasos24 March 2011 at 02:57

    0.5%?! It's quite difference since other years!

    ReplyDelete
  12. Pappa Püllï24 March 2011 at 08:41

    Wow, big different ratings!

    ReplyDelete
  13. Merlyy24 March 2011 at 11:45

    Awesome! :) Thanks for sharing

    ReplyDelete
  14. CandleintheDark24 March 2011 at 11:53

    Good info as always

    ReplyDelete
  15. husar24 March 2011 at 12:46

    good job

    ReplyDelete
  16. elexerdelex24 March 2011 at 13:24

    thanks Sam! you this really helps :) we use different therms for those values!

    ReplyDelete
  17. T. Banacek24 March 2011 at 14:06

    It is like Econ 101!

    ReplyDelete

Subscribe to: Post Comments (Atom)