Monthly Archives: July 2015

Carney indicates interest rates may rise at ‘turn of year’

Bank of England governor Mark Carney has indicated that UK interest rates could rise “at the turn of this year”.

In a speech he said that he expected rates to rise over the next three years, reaching “about half as high as historical averages”, or about 2%.

But he added that shocks to the economy could change the timing and the size of any rate rise.

Interest rates have been at 0.5% for six years as the UK economy recovers from the financial crisis.

The Monetary Policy Committee will “have to feel its way as it goes,” Mr Carney said in a speech at Lincoln Cathedral. Continue reading

Bank base rateThe Bank’s Monetary Policy Committee has agreed to keep bank base rates on hold for a further month at 0.5 percentage.

They have also voted to keep the quantitative easing programme at £375bn, a level that has been maintained since July 2012, when it was increased by £50bn.

The minutes of the MPC meeting will be published on Wednesday 22 July.

George Osborne has delivered his seventh Budget as chancellor, the first for a majority Conservative government since November 1996. Here is a summary of his main announcements.

Here are the key measures the chancellor outlined in his speech:

• “We should cut the deficit at the same pace as we did at the last parliament. We shouldn’t go faster, we shouldn’t go slower,” he said at the start of the Budget.

• The sale of government assets, such as RBS, will make more money than the previous record in 1987.

• 2019/20 national debt lower and running a budget surplus, OBR judges it will be the largest surplus in 40 years. “Britain is finally doing the responsible thing.”

• Richest are paying a greater share of tax than they were at the start of parliament

• He plans to save £17bn, making a £12m saving from welfare and £5m from clamping down on tax avoidance.

Continue reading