Prospect of 0% Interest Rates

The Bank of England’s inflation report gives a strong indication that interest rates in the UK could fall to 0 - 0.25%. There is also an increasing likelyhood of quantitative easing - a policy of creating money to avoid the deflationary impact. (B of E report)
The UK is facing its deepest recession since the Second [...]

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[Source: Finance Blog]

Interest Rate Predictions

Predictions for Interest rates in the UK. How the MPC is likely to set interest rates in the coming months.

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[Source: Finance Blog]

Real Interest Rates

Graph showing Real Interest Rates
Source: Bank of England, 2005, p. 11, Chart 3 via - open learning
Real interest rates is the official interest rate - inflation.
If interest rates are 1% and inflation is 0.2%. Then the real interest rate is 0.8%
If interest rates are 12% and inflation is 13.5%. Then the real interest rate is [...]

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[Source: Finance Blog]

Historical Interest Rates

Readers Question: How can I find data on Historical interest rates nominal and real

Graph of Interest rates since 1985
source: House web
Real Interest rates
See: Real interest rate history in UK
Other links for Info on Past interest rate trends

The Bank of England provide detailed interest rates since 1963 [B of E link]
e.g. Official interest rates since 1975 [...]

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[Source: Finance Blog]

Surprise Rise in House Prices

Halifax posted a surprise rise in house prices during January.

Figures suggested house prices in January rose 1.9% in January reversing the 1.5% fall in December.
This comes on the back of data showing an increase in mortgage approvals and activity in the housing market.
Combined with record low levels of interest rates, Halifax have [...]

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[Source: Finance Blog]

First Signs of Recovery?

“It was the best of times, it was the worst of times”
There is no doubting that the UK housing market is facing the worst of times with rising repossession, falling house prices and a collapse in property transactions. But, amidst all the doom and gloom, some mortgage owners will have to admit they have never [...]

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[Source: Finance Blog]