Interest rates are going up – and mortgages will become harder to get June 12, 2014 It's official: money is about to become more expensive. Mark Carney warned yesterday that rates could rise more quickly than the markets were predicting. The implication is that the base rate could increase later this year, rather than in the second quarter of next year; this is a major shift for the Bank of England [...]
Bank’s new deputy governor to lead crackdown on benchmarks June 11, 2014 A SWATHE of new rules over forex, commodities and interest rate benchmarks will be decided by incoming Bank of England deputy governor Minouche Shafik – before she even officially takes up the role. George Osborne will tonight give her and City watchdog chief Martin Wheatley control of a new body overseeing the regulation of the [...]
Bank staffer Ben Broadbent: Housing market is greatest threat to UK outlook June 11, 2014 Fear housing market risks, not bond market bubbles, says Bank of England staffer Ben Broadbent. When quizzed by MPs on the potential for emerging bubbles in the UK economy, his words clashed with those of Andy Haldane, now the Bank's chief economist. He disagreed with Haldane's claim that the central bank has "intentionally blown the [...]
Riskier house lending rises to five year high June 10, 2014 MORTGAGES with smaller deposits now make up the largest share of the mortgage market in five years, as the credit market recovers. In the first quarter of 2014, mortgages with higher loan-to-value (LTV) ratios were growing as a share of the market, according to statistics released by the Bank of England yesterday. Loans worth 90 [...]
Tesco Bank current account finally checks in June 9, 2014 After six years of delays, glitches and excuses, and a cool £600m splashed on the project… BRITONS can today open current accounts with Tesco Bank as the retailer at last becomes a fully functioning challenger to the big banks. The long-awaited milestone comes at a tough time for Tesco, which hopes a stronger banking arm [...]
IMF flags worry over UK house price increases June 6, 2014 THE INTERNATIONAL Monetary Fund (IMF) delivered the strongest warning yet from an international organisation about the risk of a property price bubble in the UK, though it said there have been few signs of a credit-driven bubble in house prices so far. “House price inflation is particularly in high London, and is becoming more widespread”, [...]
London house price danger flagged by IMF review June 6, 2014 The UK's government has this morning received a far more glowing appraisal from the International Monetary Fund (IMF) than it has become used to. The supranational organisation has delivered its Article IV mission findings, noting that the UK's economy "has rebounded strongly and growth is becoming more balanced". Among its other points, the IMF lists [...]
The ECB’s new interest rate policy – what does it all mean? June 5, 2014 The European Central Bank has taken the bold decision to push the deposit rate from zero to minus 0.1 per cent, essentially meaning that Eurozone banks must pay the central bank to make deposits there. But what does this decision from ECB president Mario Draghi mean for everyone? Funding For Business Lending [...]
Banks’ fines to soar past $100 billion June 4, 2014 EUROPE’S biggest banks face an eye-watering $104bn (£62bn) bill, as regulators throughout the world ramp up fines for bad behaviour. The total amount, calculated by analysts at Credit Suisse, is nearly twice as high as had been expected a year ago, following a series of huge punitive charges in recent months. The 10 banks included [...]
Queen denies housing bubble exists June 4, 2014 There is no housing bubble, we are all safe from the spectre of another boom and bust. Or so says the Queen’s speech and the accompanying notes the government published today. “My ministers will continue to promote the Help to Buy and Right to Buy schemes to support home ownership,” she said this [...]