Corinna Schmidt

The effects of a cut in interest rates on the current UK economy as a whole and on EaszJet plc. Corinna Schmidt

Essay from the year 2009 in the subject Business economics - Economic Policy, grade: 80% - First, Roehampton University London (Roehampton University London, Southlands College), course: Economics, language: English, abstract: On the base of the economic theory, it will be discussed what the influences of acut in interest rates are on the UK economy, the effects on the current financial situation and on easyJet plc. The UK economy is facing a significant downturn. After the V. A. T. reduction failed the expected increase in consumer spending, the UK uses intermediaries of the Monetary Policy (MP) to stimulate the economy. On the March, 5th 2009, the Bank of England announced that they lower the bank rate paid to commercial banks from 1% to 0,5% to ensure that the inflation target of 2 % will be achieved. (www.bankofengland.co.uk) On the base of the economic theory it will be discussed what the influences of a cut in interest rates are on the UK economy, the effects on the current financial situation and on easyJet plc.