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BDO Stoy Hayward expects two interest rate rises by the summer

BDO Stoy Hayward expects to see two interest rate rises by late-summer of 2005.

The latest BDO Business Trends Report reveals overall economic growth remains healthy, and it expects to see optimism rise again following the Chancellors speech on 16th March.

Therefore, BDO Stoy Hayward predicts that there will be two more quarter point interest rate rises in coming months, taking the interest rate to 5.25 per cent.

As the April meeting of the Monetary Policy Committee may fall within a general election campaign, there will be a temptation to start raising rates this month, after Thursdays MPC meeting according to the report.

If not, the Bank of England will probably delay until after the election and then make two increases between May and August.

BDO Stoy Hayward partner Peter Hemington says: “Economic growth has been steadily accelerating, and there is a growing feeling that it is crunch time. It looks as though the MPC will have no choice but to raise interest rates significantly by the middle of the year.”


Question over Pritchard role at the regulator

I note that a certain David Pritchard has been appointed by FSA head honcho Tiner as an adviser to the “end-to-end” review of the enforcement process – following its losing both to Legal & General and the splits’ companies – to “help speed up the fairness of decisions made”.

Thinc and Destini piece the jigsaw together

When Thinc and Destini merge in April it will create one of the biggest five advisory firms in the country, with annual turn-over of between 40m and 50m.

Eurolife sells 50m life book to Reliance Mutual

Eurolife Assurance Group has made a start in its bid to raise assets to fund its restructuring proposals with the sale of its 50m life book – Eurolife Assurance Company – to Reliance Mutual.

Will FSA feel the collar of the ‘rule-breakers’?

Since October 31 last year, the words “clear fair and not misleading” have been echoing down the corridors of that marketing departments of mortgage firms and lenders, leaving them striving to make sure their promotions and marketing are compliant.

How to use wills to protect your clients’ wishes

March was Free Wills Month! Free Wills Month brings together a group of well-respected charities to offer members of the public aged 55 and over the opportunity to have their simple wills written or updated free of charge by using participating solicitors in selected locations around England and Wales. Research by the Law Society* highlighted that only 64 […]


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