A welcome return home for the Olympic Torch
- Today's leader
Interest rate held at 5%
Thursday 10th July 2008, 11:50AM BST.
Interest rates were kept on hold for the third month in a row today as the Bank of England continued its fight to keep inflation under control. The Bank held borrowing costs at five per cent.It made the move despite mounting signs of economic gloom, prompting fears over a potential recession.
The “no change” call gives little respite to homeowners and borrowers already faced with soaring petrol, food and household energy bills.
But the widely-expected decision comes as the Bank’s Monetary Policy Committee (MPC) grapples with inflation well above its two per cent target at 3.3 per cent – and set to rise further still.
Nick Graham, chief executive of Shropshire Chamber of Commerce, agreed with the decision, but warned business would need a cut in rates soon to provide some stimulation.
Elsewhere, there was fresh woe for the building industry when Barratt Developments said 1,200 jobs will go and announced a deal with its lenders to strengthen finances amid the property market woes.
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Gordon! Another fine mess you’ve got us into!
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Not all Gordon’s fault I would blame it on Blair – wasting billions invading Iraq and Afghanistan.
And can I ask if anyone knows how much aid we give developing countries must come into billions of pound
Surely we should stop all aid to foreign countries and instead ensure the people of this country are safe (employ more Police on the ground)
Heathy (build more hospitals and recruit more nursing staff)
reduce tax on petrol
or am I in cloud cuckoo land.
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The current downturn in our economy has been triggered by financial irresponsibility, principally in the US.
Since the deliberate destruction of our manufacturing industry in the 80s, we have become more vulnerable to this due to an increase in diaphanous ‘service industries’ which have increasingly fallen prey to moves offshore by greedy global capitalists. We have also relied far too much on the City of London and financial services for the country’s economic well-being, and those leading this ‘industry’ have been far more concerned with getting their snouts in the trough than with securing long-term stability. As soon as the credit crunch arrived, they began to collapse like a house of cards.
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