View more on these topics

All-time low interest rate continues into 12th month

The Bank of England has decided to hold the base rate at 0.5 per cent for the 12th consecutive month and has continued to hold on any future fiscal stimulus.

Experts expected no change from the Monetary Policy Committee after it revealed inflation rose to 3.5 per cent in January while GDP only rose 0.3 per cent at the end of 2009.

But Legal & General director of mortgages Ben Thompson says inflation is still a “lurking threat”. He says: “The Bank of England expects inflation to remain high for several months but only temporarily so. There are some signs that inflationary pressure may build up over the course of this year and next year.”

The MPC has also decided to hold off on any further quantitative easing. While RBS head of group economics Stephen Boyle says “no news is good news” with regard to fiscal stimulus, the Bank has injected £200bn in the economy and many economists are as yet undecided whether it has had a tangible positive affect on the UK economy.

Charles Stanley chief economist Edward Menashy says: “As the markets witness the first anniversary of quantitative easing, the MPC can claim success in supporting higher asset prices, thus enabling companies to raise capital in the equity and fixed interest markets at more favourable terms. But loans fell by £4.3bn and the money supply rose at the slowest rate of growth in nine years in December 2009 – so in what is probably the central objective of the stimulus, the policy has yet to work.”



Lloyds tops FOS list with over 20,000 complaints

The number of new complaints received by the Financial Omb-udsman Service against the big banking groups has increased significantly. The figures, published this week, show new cases received in the last six months, with Lloyds Banking Group leading the way, followed by Barclays and Royal Bank of Scotland. Lloyds got 20,190 complaints across all its […]

Annuity income data

The Retirement Strategy data pages are designed to offer a wide ranging view of the current annuity rates being offered from providers including impaired, flexible and asset-backed annuity options. The pages also put current rates into historical context, offer the latest annuity best-buy tables and give a general overview of the type of products each […]


Rockingham in Rita risk row

Advisers have raised concerns that Rockingham Retirement has understated the risks of traded life settlements in its Sipp marketing literature.

Cause for complaint

I am sure that many of your readers share my frustrations and irritations with these so-called vulture funds. Our clients are ripped off and treated abominably. (No bonuses on WP, for example) and we are treated with a disregard and distain of truly biblical proportions. This little experience might help readers to redress the balance […]

Welcome to The Brunner Investment Trust PLC

Welcome to the latest update for The Brunner Investment Trust PLC from the trust’s portfolio manager Lucy Macdonald. Market Review Global equities ratcheted higher throughout February, buoyed by optimism about global growth and corporate earnings. All regions advanced, although Japan tended to lag many other markets. In sector terms, healthcare, information technology, consumer staples and […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. QE has underpinned and re inflated asset prices and has generated money for the mega companies and the highly leveraged take over deals we are seeing BUT it has not benefited the real economy one bit. Banks are still not lending to business, mortgage lending is well down and interest rates that ordinary people are charged for loans, credit cards and the like are excessively high – even higher than when BoE rates were at 5%.
    Inflation has not gone away in fact the real rate has increased dramatically due to the high internal UK inflation and of course the devaluation by over 25% or more of sterling.
    QE the low IQ policy.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm