Released on: July 10, 2010, 5:52 am
Author: David Baddeley
Industry:
Financial
The company backed the Bank of England's decision saying this will restore some faith to consumer doubts over the fragile state of the economy.
The company also said this is at least one positive that can be taken from the downturn of the economy, and added that this indicates the central banks Monetary Policy Committee is more concerned about protecting the recovery of the economy than increasing fears of a double dipped recession.
Last month, for the first time since November, the Monetary Policy Committee's decision was split.
This current base rate marks a point in history as being the seventeenth straight month in which the rate has remained at a low of 0.5%. In a move which may create more controversy, the Bank of England also decided to put a hold on its quantitative easing programme, which is designed to filter newly created money into the economy.
An expert at Debt Solutions company Scottish Trust Deed commented: "The banks decision to hold the interest rate will be welcome news to families on a low income as this is the sector that feels the brunt of the recession more than any of us”.
“The average family in the UK needs an annual income of around £29,000 just to afford life's basics. Inflation has risen but salaries haven't. An average person ten years ago with a basic wage, whose salary has increased with inflation cannot afford to live in today's current financial climate”.
“ The threat of a double dipped recession is a real one and everyone should still remain cautious with their finances. Inflation is already running at 1.4% above the Bank of England's target of 2%. The last thing we all need is another hike in interest rates so we support the banks decision to hold the rate at its current level”.
Following the bank of England 's interest rate decision, The European Central bank also followed suit by freezing its interest rate at 1%.
Notes to Editors
Simple Financial Solutions are one of the UK's leading debt solutions companies and currently help 1,000s of people each month clear their debts through its Protected Trust Deed debt solution. They also provide help and advice for IVA's, Debt Management, Bankruptcy and Full and Final Settlements.
For more information, contact David Baddeley at dave@simplefs.co.uk (0800 043 2027) or visit the Trust Deed website at http://www.scottishtrustdeed.co.uk