Base Interest Rates and UK GDP Growth
Percentage, since May 1997 base rates have been set by the Bank of England
6.0
6.0
5.5
5.5
Percent
Base interest rates
5.0
5.0
4.5
4.5
4.0
4.0
3.5
3.5
Real GDP growth
3.0
3.0
2.5
2.5
2.0
2.0
1.5
1.5
1.0
1.0
0.5
0.5
0.0
0.0
00
01
02
03
04
05
06
07
08
09
Source: Reuters EcoWin
Number of loans approved for UK house purchase
Number of
Monthly figure, seasonally adjusted
140000
140000
130000
130000
120000
120000
110000
110000
100000
100000
90000
90000
80000
80000
70000
70000
60000
60000
50000
50000
40000
40000
30000
30000
20000
20000
01
02
03
04
05
06
07
08
Source: Council for Mortgage Lenders
Trying to Stem the Credit Crunch
Percentage, since May 1997 base rates have been set by the Bank of England
7.0
7.0
6.5
6.5
London Interbank 3-Month Interest Rate
6.0
5.5
5.5
5.0
5.0
Bank of England Base Rate
4.5
Percent
6.0
4.5
4.0
4.0
3.5
3.5
3.0
3.0
2.5
2.5
2.0
2.0
1.5
1.5
1.0
1.0
0.5
0.5
0.0
0.0
Nov
Dec
07
Jan
Feb
Mar
Apr
May
Jun
Jul
08
Aug
Sep
Oct
Nov
Dec Jan
09
Source: Bank of England