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How to Protect your Wealth by Investing in AI Tech Stocks

UK Interest Rates Kept on Hold at 5%

Interest-Rates / UK Interest Rates May 08, 2008 - 02:58 PM GMT

By: Nadeem_Walayat

Interest-Rates

In a widely expected move, the Bank of England's MPC meeting kept UK interest rates on hold at 5% following Aprils cut to 5% from 5.25%.

The growing weakness in the UK economy as a consequence of the deepening credit crisis ensures that the Bank of England will continue cutting UK interest rates throughout the year, despite the rise in inflation CPI 2.5%, RPI 3.8%.


Therefore the expectations are now for two further cuts in UK interest rates by September 2008 that will take rates down to 4.5%, marginally below the Market Oracle forecast for UK interest rates to hit 4.75% by September 2008.

The outlook for interest rates post September 2008 will be published later in the year, on further evidence of the actual real impact on inflation by the increase in money supply growth above forecast trend as consequence of the UK Government attempts to bailout the UK banks from the deleveraging of the derivatives bubble following the US housing bust

 

For more on the UK interest rates and the credit crisis subscribe to our Free Weekly News Letter

Market Oracle Track Record of Calling Monthly Interest Rate Decisions

Month
Market Oracle Forecast
Actual MPC Decision
Outcome
No Change
No Change
0.25% Cut
0.25% Cut
No Change
No Change
0.25% Cut
0.25% Cut
No Pre-call
No Change
-
0.25% Cut
0.25% Cut
No Change
No Change
No Change
No Change
No Pre-call
No Change
-
No Change
No Change
0.25% Increase
0.25% Increase
No Change
No Change
0.25% Increase
0.25% Increase
Apr 07
No Pre-call
No Change
-
Mar 07
No Pre-call
No Change
-
0.25% Increase
No Change
0.25% Increase
0.25% Increase
No Pre-call
No Change
-
0.25% Increase
0.25% Increase
Overall Rate Forecast Accuracy
93%

 

By Nadeem Walayat

Copyright © 2005-08 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 20 years experience of trading, analysing and forecasting the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication. We present in-depth analysis from over 120 experienced analysts on a range of views of the probable direction of the financial markets. Thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Attention Editors and Publishers! - You have permission to republish THIS article if published in its entirety, including attribution to the author and links back to the http://www.marketoracle.co.uk . Please send an email to republish@marketoracle.co.uk, to include a link to the published article.

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© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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