Charlie Bean hails interest rate hike as sign of recovery
Monday 10 March 2014
Households across the country were today invited to “celebrate” when the Bank of England finally hikes interest rates after five years at 0.5 per cent.
Outgoing deputy governor Charlie Bean told a business audience that there were “clear signs” the economy was on the mend and that the Monetary Policy Committee was “doing its utmost to ensure that the recovery is not nipped in the bud”.
He added: “When the time does come for us to start raising the Bank Rate, we should celebrate that as a welcome sign that the economy is finally well on the road back to normality.”
Bean hailed signs of a recovery in business investment but added that the UK’s export recovery had been “somewhat disappointing” and flagged up a 10 per cent rise in the value of the pound over the past year as contributing to that. “Any further appreciation of sterling … would not be particularly helpful,” he added.
While a rate rise will be good news for savers, rising mortgage payments will hit millions of homeowners on floating-rate deals when rates finally go up.
Financial markets believe borrowing costs will begin to rise in the spring of next year although Bean urged against “getting too hung up on the precise date” of the first rate hike.
The deputy Governor said the past five years had been “tough for both businesses and households”, but they would have been tougher still without the MPC’s emergency liquidity action.
- 1 California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
- 2 Charles Kennedy 'had better judgement drunk than many sober politicians' says Ian Hislop
- 5 We have six months to save the world, says leading economist
California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
Sepp Blatter resigns: FBI are investigating outgoing Fifa president, claims report
Alton Towers crash: Four guests seriously injured as Smiler ride carriages collide
Charles Kennedy 'had better judgement drunk than many sober politicians' says Ian Hislop
Gay teenager 'forced to have sex with his own mother' to 'cure' his homosexuality, campaigners in India say
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination
Migrants in Kos: Photos show real tragedy after Brits abroad complain of 'awkward' holidays
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
Michael Gove determined to scrap the Human Rights Act – even if Scotland retains it
Threat to scrap Human Rights Act could see UK follow Nazi example, warns UN official
Church of England 'one generation away from extinction' after dramatic loss of followers
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...
£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...
£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...
£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...