In the course of 2007 there were already signs that economic growth was slowing in some regions of the world. High prices for energy and raw materials as well as tighter monetary policies in key countries had dampen global growth moderately in 2007. Growth in world trade is expected to slacken slightly. This continuing positive scenario assumes a gradual decrease in oil prices, no distortions on the currency markets and no serious geopolitical uncertainties. 

Not withsatnding the present agenda to keep the business and competition alive. The Bank of England’s decision yesterday to freeze interest rates at 5.25 per cent has been described as “a shame” by many major Mortgages broker. Instead of encouraging more investors and flow of foreign currency in the capitalist market the governmnet has now been retracted in their shelll showing nothing but their Defense Stance and un-eagerness to take challenges when many third world countries are continung to grow at phenomanal GDP rate over 10%, England is stuck at measly 4%.

It has claimed that while the Bank was concerned by inflation, a cut would have been good for homeowners and the housing market.Though it is a welcome boost for homeowners, especially first-time buyers, and would have helped offset the rises in tracker rates. The fact still reamins that country is run by business deals and not petty homeowners, who are themselves dependent on Finance for their income. Such slash in interest rates is very short eyed and immature in act from Finical point of view.