The Bank must at least discuss a rate rise: Its credibility is now on the line January 22, 2014 THE BANK of England must give serious consideration to raising interest rates. This doesn’t mean it should hike rates immediately. But the conditions under which rates would rise need to be clarified urgently. Forward guidance is being used to avoid this conversation. Ideally, guidance should be employed to reduce the discretion of policymakers over monetary [...]
Letters to the Editor – 23/01 – Pensions crisis, Best of Twitter January 22, 2014 Pensions crisis [Re: Brits Told: Save Six Times More For Your Pension or Face Poverty, yesterday] Policy Exchange’s report highlights the pension poverty the British public will face unless a radical change in our savings culture occurs. But the shortfall of auto-enrolment is its mandatory nature, which drives apathy. Abolishing opt-outs will not solve the [...]
We don’t believe you, Mark Carney January 22, 2014 When dapper Canadian Mark Carney imported the policy of "forward guidance" to the Bank of England last summer, the idea was to reassure investors – and the public – over interest rates. "Fear not for your mortgages!" they may have said, to paraphrase. "We promise that we will not raise rates until unemployment falls to [...]
What you need to know before the open – 22/01 January 22, 2014 European equities are expected stronger today, as US stock futures increase and improving Asian shares see investors relaxing a bit. Davos continues today, with world leaders debating the crucial economic questions of the day. With something of a dearth of economic data this week, investors continue to watch the various earnings reports out. SUGGESTED [...]
Fitch upgrades Virgin Money January 20, 2014 Challenger bank Virgin Money is getting stronger as its core markets like mortgages grow, credit ratings agency Fitch said yesterday. It upgraded the lender’s credit rating from triple-B to triple-B plus. Virgin’s foundation on the best Northern Rock mortgages is a good basis for growth, the agency said, and its new lending since then has [...]
Scale of house price boom in prime London revealed January 20, 2014 AVERAGE house prices have doubled to over £1m in dozens of wards inside and surrounding London in the past decade, soaring despite the effect of the financial crisis. Research by property group Savills and the Property Database, based on Land Registry figures, shows the huge rise in prices recorded in the most sought-after parts of [...]
Carney: House price boom set to end in 2016 January 18, 2014 BANK of England governor Mark Carney expects the recent surge in the property market to cool by 2016, as figures today confirm that house sales have returned to levels last seen in early 2008. The governor said that he is projecting “a continuation of the current momentum into 2014, before decelerating around the middle of [...]
Carney: House price boom set to end in 2016 January 15, 2014 BANK of England governor Mark Carney expects the recent surge in the property market to cool by 2016, as figures today confirm that house sales have returned to levels last seen in early 2008. The governor said that he is projecting “a continuation of the current momentum into 2014, before decelerating around the middle of [...]
Fix your mortgage rate right now, says Bank of England’s Sharp January 15, 2014 Deciding between a fixed or floating rate mortgage is always a tough decision and a bit of a gamble either way. But in the clearest sign yet that interest rates are on the way up, the Bank of England’s Richard Sharp has just told MPs he would be tempted to fix right now. “We have [...]
Soaring mortgage numbers renew fears of bubbly housing market January 15, 2014 (Laura Lean/City A.M.) The latest housing data is enough to fuel concerns that a "new housing bubble could develop in 2014", says IHS Global Insight's Howard Archer. Council of Mortgage Lenders (CML) figures show mortgage numbers rising by 14.9 per cent in the year to November. There's a more troubling surge among first-time buyers. They [...]