Rate of interest set to increase in economy recovers

The Chancellor welcomed as a "vote of confidence" in the economic policies of the coalition in the week following the comprehensive spending review. Economists warned that the good news may be tempered by rising earlier than expected interest rates.

Andrew Sentance, Member of the Bank of England monetary policy Committee said that it was in favour of raising interest rates.

He said: "There is a mismatch between what happens with inflation and growth, which we have heard about today and the level of interest rates a little".

"I am in favour of gradually move from their very low level which I think it can interest rates occur without disrupting business and consumer confidence."

Interest rates have been historically low levels since the credit crisis took place with the Bank of England, maintain rate at 0.5% since March dernier.Il had been planned, there is very little change before the end of next year, but on the back of strong growth of yesterday some traders were two rate increases at least from before then, with a basic rate of
1 per cent at the end of 2011.

A House with a typical mortgage of £ 150,000, assuming a variable rate of 4 per cent owner would have their monthly payments increase to approximately £ 790 approximately 830 £ if rates have increased by 0.5 %.Banques would also increase the cost of fixed-rate transactions.

However, it would be good news for the majority épargnants.La accounts currently on the market fail to offer its customers a real return on investment.

Before the publication of the figures yesterday, the coalition has been made to a significant drop in the growth rate of 1.2 %.Mais instead of the planned growth of 0.4% second quarter by many commentators, gross domestic (GDP) increased by 0.8 between July and September, said snolab.

The Board argued that the circumstances of the figures Q2 - an economic rebound after a particularly cold winter - meant that the most recent data do not represent a slowdown in the economy.

Last week, Mr. Osborne announced reductions intended to restore some credibility to the economy of Great Britain, a decision which seems to have been approved yesterday by standard & Poor £ 81 billion.

Welcome to what he calls a "double dose of good news" of the economy, the Chancellor said: "what you see today, in an uncertain global economic context is Britain's growth, increasingly more strongly, growth, we have seen in this part of the year for a decade and also our country credit rating is guaranteed.

"This is a great vote of confidence to the United Kingdom and a vote of confidence in economic policies of the Government of coalition.Je believes to be underpin confidence in the recovery for the future".Ses believes that the growth figures are a clear sign that Britain has escaped double-recession.

Economists have noted that construction, which contributed 0.2 point of quarterly growth was caused by government spending.

The pound dropped after the figures have been announced.

Mr Osborne said: "it gives me confidence that, although the global economic situation remains unstable, a sustained recovery is underway.".

Said that the market had expected an increase in interest rates next year, but that both increases in rates must now merchants.

Company gave a cautious welcome, growth, but there were warnings about the imminent impact of cuts and increase in VAT new Année.David Kern, Chamber of commerce UK Chief Economist said: "we must not forget that we have not yet seen the impact, deficit reduction measures for."

A vote of confidence in the economy, JP Morgan Chase is on the verge of agreement to move forward with Development Office 1 billion pounds in Canary Wharf that had been threatening scrap.

Alan Johnson, the Shadow Chancellor stated that figures show that the momentum "rest support labour economy."

He added: "the risk for the future, is that the Government adopted a plan to cut one million jobs, but no plan to support the private sector in their replacement.".


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