Bank Base Rate stays at 0.5%

The Bank of England has left interest rates unchanged; Bank base rate remains at 0.5% Furthermore, no new Quantitative easing (QE) measures will be introduced. Whilst not a surprise the decision comes despite inflation continuing to rise and growing calls for a slow tightening of monetary policy. Indeed the three members of the MPC (Monetary Policy Committee) voted last month for an increase to interest rates. Mervyn King, Governor of the Bank of England, has consistently stated that he believes inflationary pressures are temporary and that inflation will fall towards the end of 2011 and into 2012. However many experts believe that ...

UK unemployment falls slightly to 2.47 million

The UK saw a slight drop in unemployment figures in the three months leading up to July, according to statistics released this week. The National Office of Statistics has revealed that the figure fell by 8,000 to 2.47 million between May and July. Although to be welcomed, the news has come as a disappointment to many experts who predicted the fall would be much closer to 40,000.