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Posts Tagged ‘Bank of England’

Interest rates due to soar

Thursday, December 23rd, 2010

The Bank of England warned today that interest rates could rise to as much as 5% next year. Mr Fisher, the executive director of markets and a member of the MPC (Monetary Policy Committee), said the bank is looking to make the increase as soon as possible.

Families could see their monthly mortgages soar ten-fold if the bank makes the decision next year.

There were more concerns today about the strength of the UK economy during the recovery from the recession. The economy grew by 0.7% in July, August and September, rather than the 0.8% initially reported, the Office for National Statistics said. Growth in the first six months of the year was also slightly lower than expected.

Here at 247Moneybox.com we are worried that raising the interest rate too quickly could bring the economy to a grinding halt. With imminent deep cuts to public spending and the inevitable VAT rise, it’s going to be a tough year.

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Tags: Bank, Bank of England, Emergency Expenses, Families, Faxing, Interest rates, Monetary Policy Committee, Paperwork
Posted in Credit Crunch, Economy | No Comments »

High-street lenders face further pressure to ease up lending

Thursday, August 13th, 2009

Further pressure has been levelled at high street banks to encourage them to lend more and get the economy back on the road to recovery, reports The Times online. The Bank of England threatened to cut the rate it pays to high street lenders. The Governor of the Bank of England, Mervyn King, said he was considering cutting the interest the Bank pays on cash held by the banks in its reserve accounts.

The amount in these reserve accounts has increased substantially in the last year from £90.6 billion at the end of 2008 to around £157 billion in the first half of this year. King also forecasted more gloomy news, stating that the recovery would be ’slow and protracted’, and that consumers will feel the fallout for years to come.

This comes at a time when the bank stunned many by injecting £50 billion into the economy to prevent a slowdown. King states that the British economy had shrunk much quicker and deeper than his team had predicted and requires ‘robust growth’ to put it on a stable footing.

With this there has been news of rising unemployment, which had jumped to a 14-year high of 2.43 million in the last three months. King highlighted the significant role banks would have in stimulating a recovery, as growth would continue to be curbed unless banks started lending again. Lending to non-financial corporations slumped by a record £14.7 billion between May and June this year, despite the bank’s measures to unclog the credit markets via quantitative easing.

Do you need a loan? Need a little quantitative easing of your own? Well, look no further than a payday loan from us here at www.247Moneybox.com. We work to tailor loan solutions to people so they can cover those urgent expenses until the next pay cheque arrives. So don’t be worried about unpaid bills any longer - visit our website and fill out an application form now!

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Tags: Bank of England, Lending, Mervyn King, Payday Loan
Posted in Credit Crunch, Government | No Comments »

MPC ‘more worried about deflation’ as CPI hits 1.8%

Monday, July 20th, 2009

Good news about the price level today - The Guardian reports that the Consumer Price Index (CPI), the measure of the cost of living, has seen a drop from 2.2% at the start of the year to 1.8% last week.

The fall has silenced calls for the Bank of England to change the policy of stimulus that has been adopted for the last couple of months. It is now expected that we will carry on in a period of ultra-low interest rates.

It is the first time that inflation has been within the Bank’s Monetary Policy Committee’s (MPC) target of 2.0% since September 2007, and which has since then peaked at 5.2% last September following increases in oil prices. However inflation remains higher than the average EU level at 0.7%, and the 16 country Eurozone 0.15%. Analysts now worry we may experience deflation which could be damaging to the economy.

The driving forces behind the lower prices were food and non-alcoholic drinks, which fell to 5.4% last month from 7.8% the month before. Furniture has also seen price falls after there has been no impetus to put up prices before a summer sale, caution being spread by companies shaken by the collapse of MFI.

In the wider economy, Brendan Barber, the Trade Union Congress (TUC) general secretary warns of a period of deflation as having a detrimental impact on jobs, growth and investment. However, Adam Posen believes the British economy could soon return to growth by as soon as 2010, though he doesn’t expect it to be a ’smooth ride’.

Are you getting worried about this month’s payments? Are you going to struggle to pay off your mortgage payments and your paycheque can’t come soon enough? Then consider talking to us here at www.247Moneybox.com as we can offer you peace of mind. With our payday loans we can offer you fast cash, which could help take care of your mounting expenses. Don’t fret any longer - make an application today and you’re on the way to being able to relax about your financial situation this month.

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Tags: Bank of England, Deflation, Inflation, MPC
Posted in Government, Inflation | No Comments »

King targets banks ‘too big to fail’

Tuesday, June 23rd, 2009

An interesting opinion from the governor of the Bank of England, Mervyn King, is that the banks ‘too big to fail’ should be prevented from getting that big in the first place. According to the Times Online King stresses this is not a personal ploy for power nor is it instigating a battle with the Treasury, but is in the country’s and taxpayers’ best interests.

This comes at a time when the chancellor, Alistair Darling, will be announcing proposals for regulation of the financial sector for the next ten years. The proposals will at large be based on the findings of Lord Turner’s report on the Financial Services Authority (FSA).

King’s remarks not only question the general size of banks but whether the banks are mixing high-street retail banking with high risk investment banking, which had caused so much trouble in the last couple of years. The issue of size and relative failure is a contentious issue, and many analysts have argued that the bigger banks were more likely to fail, and fail in a more expensive way to the taxpayer.

However, others highlight that even the relatively smaller banks have an impact, for instance Dunfermline, Northern Rock and Bradford & Bingley, and still needed to be saved. Even the biggest banks did not fail simply because of their size, for instance RBS’s disastrous acquisition of ABN Amro, leading to their needing to be rescued by the taxpayer.

The Swiss government is even considering measures to physically curb their big banks, UBS and Credit Suisse. However, one analyst argues this may lead to banks moving their headquarters abroad, and the last thing the country wants is a revenue drain abroad.

At the basis of Darling’s future proposals for regulation is the idea of responsible lending. Something we here at www.247Moneybox.com take very seriously indeed. When you apply for our cash loans, we want you to be sure you have thought ahead and can afford the repayment. Check out our lending guide if you need some assistance.

We provide rapid approval for payday loans, and our online service is faster and more convenient than other online lenders. There are 3 easy steps: simply take a few minutes to fill in our online application form, wait to receive our quick approval if you qualify, and receive your money faster than you think!

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Tags: Bank of England, FSA, Recession
Posted in Government, Recession | No Comments »

Hurrah! Mortgage approvals up - some good news at last

Monday, March 30th, 2009

Official figurers released by the Bank of England show that mortgage approvals increased more than expected in February. There were 38,000 approvals in the month, up from 32,000 in January.

Citing a BBC article, Vicky Redwood at Capital Economics believes February’s household borrowing figures suggest that housing market activity may finally have turned a corner. However, approvals have a long way to go before they get to levels that are no longer consistent with falling house prices - in fact they need broadly to double.

Well, at last some positive data has come out, and what with the clocks springing forward and Jenson Button winning in the Aussie GP what a good way to start British Summer Time!

However, it’s not all good news this week as unemployment figures creep up. David Blanchflower, Bank of England Monetary Policy Committee member, warned that unless the government takes drastic action to tackle the recession, spending up to £90bn on new projects, unemployment could double to as high as 4 million.

Quoting from a Telegraph article:

‘The Bank’s forecast is that there will be a strong recovery and that this will pick up later this year, but there are strong arguments about why that won’t happen,’ he said. ‘The problem is that in forecasts [economists] tend to be over optimistic. Likewise, the probability is that unemployment of 3m is an underestimate.’

A change in circumstances such as losing your job is incredibly tough especially if you have a family to provide for. Sometimes a short-term loan can help you solve your immediate cash needs until a longer term solution can be found. Here at www.247Moneybox.com we are 100% focused on providing straightforward. transparent, online payday loans, sometimes called payday advance loans, personal loans, or fast cash loans. It’s the only thing we do, and we are firmly committed to responsible provision of payday advance loans.

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Tags: Bank of England, Mortgages, Recession, Unemployment
Posted in Government, Recession, Unemployment | No Comments »

Today’s interest rate cut and what that can mean for you

Thursday, March 5th, 2009

Sometimes we here at www.247Moneybox.com go all a bit highbrow and the topic of discussion in the office today has been the latest, albeit expected, cut in the Bank of England (BOE) base rate. The members of the monetary policy committee agreed to cut interest rates another 0.5% in the latest round of slashing rates since last autumn. The base rate is now just 0.5% so is that good news all round?

Well, yes and no. Yes if you are on tracker mortgage that follows the BoE base rate, however even this has a caveat as this article in the Guardian points out. If your mortgage is linked to your lender’s standard variable rate (SVR) you will find they are not contractually obliged to pass on the cut, but some have already announced they will do so. A handful of banks have to cut rates because their terms and conditions state that the difference between their SVR and the base rate cannot exceed a certain level. Lloyds TSB and Halifax, Nationwide and Skipton building societies are in this position. So good news if your mortgage is with them.

It’s certainly not a good thing if you are a saver. Moneyfacts.co.uk estimates that after last month’s cut, 86% of savings providers cut their rates by the full 0.5% or more. The latest reduction will mean already downtrodden savers will receive even less interest.

Probably the most interesting thing to note is that rates on loans and credit cards are not really related to interest rate cuts. In fact, rates on these products have been slowly increasing over last year as institutions tighten their lending criteria. A year ago the average credit card rate was 16.8%, compared to 17.7% now.

We here at 247Moneybox.com haven’t changed our rates at all and clearly set out what your charges will be over the life of your cash advance. That’s important for everyone as we want everything to be clearly out in the open and for you to not have to worry about the Bank of England and the MPC with relation to your 247Moneybox loan.

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