Okay, it's got nothing to do with May (although it 'may' have in a few months...) I just couldn't resist the pun! Why not break with tradition by talking about financial matters AND having some fun? Anyway, onto the facts...
Alistair Darling, Chancellor of the Exchequer, is reported as saying that the Bank of England has "room for manoeuvre" on UK interest rates if necessary to stabilise the slowing economy.
He is quoted as saying, "Because we now have low unemployment, we've got historically low inflation, low levels of interest rates and mortgage rates, the Monetary Policy Committee has room for manoeuvre. As the (Bank of England) governor said in his speech in Bristol a few days ago, that wasn't available to them 15 years ago".
Mr Darling's comments could be taken by the markets as added pressure on the Bank of England to lower the cost of borrowing, despite inflation remaining a significant concern.
It is generally expected that the Bank of England will lower interest rates to 5.25 per cent next month, but will not necessarily go any further in a hurry. The quarter per cent reduction last December saw the first UK rate-cut in over two years.
Amid much recent hype about the likelihood of the US economical situation spreading quickly throughout Europe, Mr Darling highlighted the fact that the situation in the US is very different to ours in the UK and most other economies in Europe.
So, after the usual panic reaction whipped up by the good old British media, it seems the US situation may not be as influential as we've all been lead to believe. If you're looking for some real, human advice from a loans expert who has the time and inclination to keep on top of the complexities of financial forecasting (let's face it, if it's not your field of interest it can be a major headache!) then just give us a call on 0844 560 7703 or visit the Personal Loans Made Easy web site, where you can be safe in the knowledge that we've already done all the hard work to bring you the best deals and advice available...
...then get on with doing what YOU'RE best at!
