There is growing speculation that interest rates will fall despite the monetary policy committee’s decision last week to keep bank base rate at 4.5 per cent for the fifth consecutive month.Some commentators believe there is an compelling argument that rates should be lowered. Rates were last reduced in August 2005 by 25 basis points from 4.75 per cent. John Charcol technical director Ray Boulger says he firmly believes there will be a change in the near future. He says: “January rarely sees a base rate change as more time is needed to assess the economic impact of Christmas. However, the surprise vote by MPC member Steve Nicol for a quarter-point reduction at the December meeting has strengthened the likelihood of a rate cut in the very near future. I expect to see at least two quarter-point reductions this year.” Lloyds TSB Financial Markets chief economist Trevor Williams says he is disappoin- ted that rates were not cut. He says: “This month, many will be left wondering why, once again, the MPC has decide to keep the lid on rates when, for some, the arguments for a decrease seem overwhelming.” However, the Royal Institute of Chartered Surveyors is urging the Government not to cut rates. It says: “We see little reason for the Bank of England to rush into cutting interest rates further in the next few months unless there is a ren-ewed deterioration in high-street spending.”
I question the validity of the regulator’s threshold conditions when hundreds of small IFAs endure significant personal inconvenience to meet the capital adequacy require-ments at all times, yet the industry’s biggest organi-sations continue to trade unabated and inadequate. I question an enforcement system that judges its penalty on the ability of the culprit to endure […]
Thames River Capital co-head of emerging market equities Rory Landman is retiring from fund management in his late 40s. Landman built his reputation as head of emerging markets at Barings, working alongside head of emerging Europe Martin Taylor. The pair moved to Thames River in 2001 to build its emerging markets team. The team runs […]
The IMA has published six fund processing principles including encouraging electronic messaging for communication between fund managers and client-side financial institutions.
New Star trio tell investment IFAs that disagreements can be healthy for performance
Indian equities have officially re-entered a bull market, with the benchmark index climbing to a 11-month high. But this is just the start, argues Neptune head of Indian Equities Kunal Desai. Read more: Important information Investment risks Neptune funds may have a high historic volatility rating and past performance is not a guide for future […]
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Standard Life Aberdeen has sold its insurance arm to Phoenix in a £3bn deal. In the first results since the merger of Standard Life and Aberdeen Asset Management, the firm has said it has decided to exit the insurance market. Phoenix will pay a total of £2.3bn in cash for the business. Standard Life Aberdeen […]
Acquisitions are continuing apace this year but will that trend continue or will the market slow?
Latest statistics show personal pensions, in particular, get a bad rap The recently published preliminary estimates from the Office for National Statistics’ Wealth and Assets Survey make for interesting reading with regards to how people view pension savings and how safe they are. The next round of this survey will be even more interesting in light […]