Interest Rates Held: How to Budget in Hard Times

Published on 1 January 1970 by Raffick Marday

The Bank of England today announced it will continue to hold interest rates at 0.50 percent for the 20th consecutive month in a row.

As the economy continues it struggle to get back on its feet the public are feeling the pressure on their purses with high inflation and VAT set to increase in January. If you need to budget your finances compare a prepaid card to prevent over-spending.

The Monetary Policy Committee (MPC) voted also to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion, despite speculation that the Bank would begin ‘Quantitative Easing’ ,while the latest inflation and output projections is due to be published in the Inflation Report next week.

“The future for the UK economy remains uncertain and there are concerns about a weakening of growth ahead,” commented Barry Naisbitt, Santander UK’s chief economist.

“With inflation still well above its target and the increase in GDP in the third quarter ahead of market expectations, it will be interesting to see if the voting pattern changed.”

Ray Boulger of mortgage advisers John Charcol commented that as the US economy is still weak with the housing market dragging its recovery down, the UK will find it much harder to grow as a consequence.

“How the economy performs in 2011 as the impact of the Comprehensive Spending Review progressively bites will be a major factor in determining whether the next move on monetary policy is more easing,” he added.

Compare Prepaid Cards

A prepaid credit card is a good way to help a family budget their monthly income to ensure they do not overspend.

As the Bank of England has held the base rate at a low 0.5 percent due to consumers struggling with mortgage payments, any means to aid financial control is advised.

Anyone can apply for a prepaid card as credit history and income is not a factor for eligibility

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