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Interest rates held at 0.5% as eurozone crisis threatens to plunge the UK back into recession
29/12/2011
It was recently reported in the National Press that despite the review by the Bank of England of the current economic situation, the interest rate of 0.5% will be held for the 32nd consecutive month in an attempt to prevent the UK from slipping back into recession.
Currently inflation is running almost three times higher than the target rate, at 5.2%. If the Bank of England were to increase the rate of interest they predict that inflation would drop significantly, due to the economy being cooled. At this time, the Bank does not believe that the UK economy is strong enough to support an increase in the interest base rate.
The UK is currently avoiding the eurozone crisis, however with a change in the rate of interest the Bank believe that we could slip back into recession.
Homeowners aged over 55 years who have been affected by the downturn in the economy and would like to know how much money the value of their property could release to increase their income, can find out by contacting therightequityrelease.co.uk for equity release advice.
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