Accounts software helps businesses to manage interest rate changes

News Article - 08 May 2008
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Businesses in Britain can benefit significantly from using accounts software to monitor their finances and manage changes to UK interest rates.

Analysts are predicting that the Bank of England's monetary policy committee (MPC) will choose to keep the base rate on hold this month, but further cuts could come later in the year.

The economic slowdown and the effects of the global credit crunch caused the MPC to approve a quarter-point cut in interest rates last month, from 5.25 per cent to five per cent.

Meeting for its monthly rate-setting decision on Thursday, the committee is widely expected to hold interest rates, though weak manufacturing and service sector data could push rates down again, affecting accounts software customers.

The MPC has cut interest rates three times since December 2007 in response to slowing economic growth and consumer spending, a housing market slowdown and the credit squeeze.

Some economists believe that a further interest rate cut is needed this month to boost the UK economy, though others remain concerned about inflationary pressures and are calling for rates to remain on hold, as food and energy prices continue to rise.

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