Uk Interest Rates

Yet both of our economy are in real trouble. Why, despite the fact that interest rates in the United Kingdom have remained relatively constant compared to U.S. interest rates? Apart from the last rate cut of 1.5%, of course, but it was only last Thursday.

Laurent answer is "interesting", but facts is upside down, interest rates in the United Kingdom are, in effect, imposed by the government, while those in the U.S. are set by the "Fed" and are dictated by market conditions ...

As U.S. interest rates are controlled by the Federal Reserve, which despite its name is held by private banks. So there are a bunch of puppets rich, super powerful great guy, playing with our economy.

It is characteristic that Europe is late to the table. Usually European central bankers (ECB and BOE) wait to see if the Fed can make the world economic crisis and before acting. However, in most cases, as their economies recover later the United States.

the United Kingdom tends to be less willing to change the interest rate that the United States. conservative attitude in the United Kingdom on monetary policy is why they are not part of the eurozone. This is why the pound is worth far more than the U.S. dollar, but 30 years ago (before Paul Volcker, essentially), they were worth about the same.

this means that the United Kingdom may have a little more severe fluctuations, but in the long term, they are able to avoid devaluing their currency.

Correction to previous poster: The district banks are held by commercial banks in the district. The Federal Reserve Board of Governors and the FOMC are not controlled by bankers. And investment bankers have nothing to do with anything.

U.S. interest rates fell because the Fed has injected money into the economy to ease the liquidity crisis and bringing inflation worries No pilot. The Bank of England gives greater priority to inflation.