the Business Forum and
the Economic Partnership
in Brighton & Hove
Homepage    BCRP Intranet    Funding    Events    Knowledgebase    Links    About us     Contact us
Key projects
Crime
reduction
 


Inward
investment
information
 


Licensee
Forum
 

Workforce development 

Transport
 

Business &
climate
change

Property &
Development sites

Business
Improvement
Districts

Housing
 

Strategy
 

Consultation opportunities
 

Brighton & Hove Business Forum
8-11 Pavilion Buildings, Brighton, BN1 1EE
Tel: 01273 735442
Email: info@brighton
business.co.uk

© Brighton & Hove
Business Forum

News - 7 February 2008
Busy times at the Bank of England

Interest rate cut. More to come?

In response to the slowing UK economy , the Bank of England Monetary Policy Committee (MPC) has cut interest rates by a quarter percentage point to 5.25%.

The move was widely expected following recent cuts in America, where the Federal Reserve has reduced interest rates by one and a quarter percentage points to 3%.

However, the Bank of England signalled that further cuts couldn’t be taken for granted because of fears over rising prices and the need to ensure that economic stability and inflation were balanced.

According to Incomes Data Services (IDS), average private sector pay deals in the last three months rose to 4% annually, up from 3.5% in 2007,

In its statement, the Bank said: "Inflation at 2.1% in December was close to the 2% target, but higher energy and food prices are expected to raise inflation, possibly quite sharply, in the coming months."

"The Monetary Policy Committee needs to balance the risk that a sharp slowing in activity pulls inflation below target in the medium-term against the risk that elevated inflation expectations keep inflation above target," it added.

The Bank warned that it maight be necessary to sacrifice some economic growth and consumer demand in order to bring inflation back under control.

It added: "Some slowing of demand growth, by reducing the pressure on capacity, is likely to be necessary to return inflation to target in the medium term."

However, some analysts warned that the Bank may have little choice but to cut rates again this year should economic conditions deteriorate further.

Andrew McLaughlin, chief economist at RBS, said "The slowdown in the UK economy has so far been modest, and, with inflation above target, the MPC appears determined to proceed with caution,"

"Nevertheless, economic headwinds are becoming stronger and a more aggressive policy response may yet be required."


Read related items on:
Interest Rate
National
Bank of England
Royal Bank of Scotland
McLaughlin, Andrew


Browse our business Knowledgebase or search by keyword


Headlines

13 December 2017
Ethical Food StartUp Programme - Idea Generation Workshop
12 December 2017
Utilise Plus launch programme of energy efficiency grants and business support for SMEs 11 December 2017
City Centre Vacancy Rates Drop Slightly From Sept 5 December 2017
Innovate UK Announces Sector Competitions in Manufacturing and Infrastructure Systems 5 December 2017
GDPR, steps to early compliance 1 December 2017
The 29th Sussex Business Awards 2017 Winners Announced 1 December 2017
Old tech gear? Give IT a new lease of life 29 November 2017
Driving for Better Business Campaign launches 29 November 2017
ARKA Funerals sponsor Burning the Clocks 2017 with 'In Memory' lanterns 27 November 2017
Govia Thameslink launches third consultation phase on once-in-a-generation timetable restructure 23 November 2017
Coast to Capital Launches Brighton Mainline Alliance 22 November 2017
Calling all UK companies that have transport, parking and commuting issues to address 15 November 2017
Start-up Challenge Business Competition Offering £10,000 Investment to Young Entrepreneurs 15 November 2017
IUK Announces £10 Million Innovation Loans Infrastructure Systems Funding Competition for UK SMEs 15 November 2017
Sussex Food and Drink Grand Finalists Celebrate Success 10 November 2017
Meaning conference confirms speaker line-up: breeding a new army of business activists 10 November 2017
Positive body image documentary screening at Hove school 8 November 2017
Material Practices: Painting and Printmaking at the University of Brighton - Private View 8 November 2017
Economic Partnership kick starts city strategy consultation 8 November 2017
GTR respond to positive ASLEF referendum result 7 November 2017
350th employer signed up to the Brighton & Hove Campaign 7 November 2017
Rampion announces £4 million community fund 6 November 2017
The First Gamification Conference comes to Brighton 3 November 2017
Shoreham Port Welcomes New Commercial and Operations Director 2 November 2017
Burning the Clocks launches Crowdfunder for 2017 2 November 2017
The Gatwick Diamond Business Awards are now open for Entries 31 October 2017
Brighton Based Paxton Open New Centre for Technology & Innovation 27 October 2017
Adventures in risk taking for high growth businesses 27 October 2017
Can your business benefit from offering a 'world of work' experience? 27 October 2017
The Small Business Saturday Bus Tour launches across the UK for its fifth year 24 October 2017
Business Networking & Case Study Visit with the Sustainable Business Partnership 24 October 2017
Could you use an Energy Saving Workshop? 17 October 2017
Peter Blake raffle raises £2,290 for Middle Street School 17 October 2017
AMEX named major sponsor of city's bike share scheme 16 October 2017
Ropetackle Business Friends scheme 4 October 2017
VIRGIN STARTUP MEETUP 'HOW TO TELL (SELL) YOUR STORY' 3 October 2017
BTN BikeShare: a successful first month 3 October 2017
PLATF9RM open at Hove Town Hall 28 September 2017
Green Light for Preston Barracks and Moulsecoomb Campus Regeneration 28 September 2017
Local success story Giggling Squid at the Brighton Summit