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Coogan claims he was right to call for rate rise

CML director general Michael Coogan has defended his unprecedented call in June for the Bank of England to hike interest rates despite opposition from the biggest lenders.

Speaking at last week&#39s CML annual dinner, Coogan admitted he “risked making himself the most unpopular person in the industry” in the summer when he declared that an increase from 4 per cent would make the housing market more sustainable. Lenders such as the Halifax said they did not back the call.

At the dinner, Coogan said keeping rates at a status quo has now led to the inflationary pressures he anticipated from equity withdrawal and house prices have accelerated rather than slowed.

He said, despite a boom year for CML members, with lenders, and consumers, rarely having it so good with the lowest mortgage rates for decades and the best lending opportunities for years because of high demand, he still sees reason to complain about the rate issue.

Coogan warned lenders and borrowers that the boom will not last forever and they should prepare for the downturn as the CML is predicting a big slowdown in house price growth. Describing consumer confidence as a “fickle beast”, he said the industry must be aware of the consequences of its comments and actions.

He said: “The other person who made a similar suggestion on interest rates at that time was Mervyn King and he got promoted as a result.”


RAM deal puts Insight among big fund firms

Insight Investment has bought Rothschild Asset Management for £61m in a deal which the HBOS subsidiary says elevates it into the upper tier of UK fund management groups.The deal, which prices the business at just 0.55 per cent of its assets under management, includes RAM&#39s multi-manager operation as well as its range of retail and […]

Time to split top jobs at the FSA say Tories

The announcement of FSA chairman Howard Davies&#39 resignation is an ideal time for a full-scale review of the regulator according to Conservative shadow chief secretary to the Treasury Howard Flight. It is essential the jobs of chairman and chief executive are split, says Flight, and a heavy-hitting chairman from the industry found to occupy the […]

Martin Currie – Martin Currie China Hedge Fund

Friday, 13 December 2002 Type: Hedge fund Aim: Growth by investing in long and short Chinese equities Minimum investment: Lump sum $100,000 Place of registration: Dublin Investment split: 100% in long and short Chinese equities Charges: Annual 1.5% Commission: Subject to negotiation Tel: 0131 4794615

Gartmore Investment Management – Cautious Managed Fund

Wednesday, 11 December 2002 Type: Oeic Aim: Income and growth by investing in UK equities and investment-grade bonds Minimum investment: Lump sum £1,000, monthly £50 Investment split: UK equities 60%, investment-grade bonds 40% Yield: 4.5% gross a year Isa link: Yes Pep transfers: Yes Charges: Initial 3.5%, annual 1.25% Commission: Initial 3%, renewal 0.5% Tel: […]

Artemis Global Income: Making sense of global markets

The rally in cyclical ‘value’ stocks paused for breath in February, as investors took a more cautious tone and switched their attention back to defensive areas. In this article, Jacob de Tusch-Lec, manager of the Artemis Global Income Fund, explains how he has positioned the portfolio, given the many economic, geopolitical and policy risks that […]


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