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Bank of England maintains interest rates at 5.75%

The Bank of England’s Monetary Policy Committee has announced it is maintaining interest rates at 5.75 per cent.

John Charcol senior technical manager Ray Boulger says rates should have been cut today. He says the MPC’s decision fails to look beyond the probable short-term increase in the CPI back above the target level of 2 per cent, to the dangers the global economy faces.

He says: “This is in the light of the increasingly worrying news which continues with relentless regularity to seep out from the banking community of ever more losses on their sub prime mortgage lending.

“A cut of 0.25 per cent today would at least have pushed three month Libor back down to about 6 per cent. It would also have started to redress the Bank of England’s policy mistakes, as outlined in last month’s Financial Stability Report, in dealing with the credit crunch.”

According to Boulger the problems in the credit markets are going from very bad to worse as increasingly dire news emanating from the sub-prime mortgage mess continues to surface. He says the MPC’s failure to cut rates means today’s opportunity to mitigate the potentially serious problems building up in the banking system has been lost.


Citigroup appoints new CEO following Prince’s resignation

Citigroup has appointed former US Treasury secretary Robert Rubin as chairman and former Schroders chief Sir Win Bischoff as temporary chief executive after Charles Prince resigned over the weekend.Prince handed his resignation in following the news that Citigroup is due to write down an additional $8-11bn in leveraged and sub-prime loans.The resignation of Prince comes […]

New equity release plans increase by 15 per cent, says SHIP

The total of new equity release plans sold in Q3 2007 has increase by 15 per cent, says SHIP.Its third quarter figures show that the number of equity release plans have increased from 6,954 in Q3 2006 to 7,981 in Q3 2007.The total value of new business written reached £325.3 million, the highest quarterly figure […] says the Competition Commission’s PPI report misses mark

The Competition Commission has failed to identify that selling payment protection insurance to consumers while they are arranging credit agreements is the major reason the PPI market lacks competition, according to says this link needs to be broken if consumers are to be treated fairly but says the closest the CC gets to this, […]

The hot topic

A number of climate change funds have been launched recently, with Virgin’s offering the latest. Do you expect anyone to make money from these funds or are they being created to meet the public’s demand for all things green?


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