View more on these topics

CBI cuts growth forecast for Q1 2011

The CBI has downgraded its economic growth forecast in the UK for the first quarter of 2011.

The CBI believes that job cuts and higher-than-expected inflation will see growth cut from 0.3 to 0.2 per cent.

However, the CBI says that it does not expect he UK to fall back into recession and that growth is likely to rise to 0.4 per cent in the second quarter and 0.5 per cent in both the third and fourth quarters.

It also says that GDP will rise to 2.4 per cent in 2012.

CBI chief economic adviser Ian McCaffrey says: “Quarterly growth at the start of 2011 is likely to be very sluggish, although we do expect the recovery itself to stay on track.

“What is striking is how little we see growth accelerating in 2012. Typically, by the third year of a recovery, growth would be more robust than we expect for either 2011 or 2012.”

It also says that continued high inflation next year will force the BoE to gradually raise interest rates in the spring and the base rate will hit 2.75 per cent by the final quarter of 2012.



Prepare for interest rates of 5%, warns BoE markets chief

Homeowners should prepare for interest rates of around 5 per cent, Bank of England executive director of markets Paul Fisher has warned. In an interview with the Daily Telegraph, Fisher, who is also a member of the rate setting Monetary Policy Committee, says that central bank policymakers would like to raise rates as much as […]


Friends attacked over non-protected transfer

Intelligent Pensions technical director David Trenner has hit out at Friends Provident after it refused to allow a partial transfer of £68,000 of non-protected rights into a Sipp. The dispute centres on Friends’ policy on the partial transfer of pension funds which have protected and non-protected rights elements into a Sipp. Friends says the product […]


Should we be worried when retail investors start piling into particular sectors?

An interesting press release emerged from the Investment Management Association earlier this month. It seems that in October, the latest month for which detailed figures are available, global emerging market funds established the highest level of sales on record. Global bonds, which had led the field in September, dropped to third place, with absolute return […]


MPs call for pro-RDR IFAs to speak up

Treasury select committee member Mark Garnier has urged pro-RDR advisers to contribute to the committee’s consultation. Speaking at a PanaceaIFA RDR event in London today, the TSC member and Conservative MP said the committee needed to know the true balance of IFA sentiment as trade and professional bodies are claiming that MPs are only hearing […]

Benefits of using a probate bare trust

Have you ever wondered what happens to someone’s investment bond on their death if it is not written in trust? When someone dies it is essential to deal with their estate, which can be made up of their home, belongings, investment bonds and anything else they may have owned. But, it is not as simple […]


News and expert analysis straight to your inbox

Sign up


    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