Who are the winners and losers from Mark Carney’s interest rate announcement?

Autumn Statement 2012 Winners & Losers_istockThe phrase ‘forward guidance’, introduced into the financial dictionary earlier this week by Mark Carney, the new Bank of England Governor, sounds innocuous enough. But for better or worse, it will soon affect each and every one of us over the next few years. First things first, what does ‘forward guidance’ mean? Put simply, the Bank of England’s Monetary Policy Committee (MPC) is tasked with keeping inflation at 2%; not higher, not lower, but at ...

Bank of England leaves interest rates unchanged

London_istockDespite speculation that the Bank of England’s Monetary Policy Committee might have considered cutting interest rates, or indeed extend the existing programme of Quantitative Easing (QE), no changes to either were announced when the MPC’s decision was revealed at noon today. Bank base rate has now been on hold at 0.5% for over four years and with a change in Governor imminent, it seems the members of the MPC are not keen to make any significant changes, before Mark Carney takes up his post ...

Housing & mortgage round up: House prices continue to fall as do interest rates

Housing & mortgage round upThis week we take a look at the latest house prices survey which makes grim reading for most homeowners, although people looking to get on the property ladder may take a different view. We also cover some interesting moves by the big lenders on their fixed rate mortgage products, in the wake of a new government scheme designed to encourage banks to lend at more competitive rates. House prices fall...

Sharp fall in the rate of inflation

Figures released today by the Office for National Statistics have shown a sharp fall in the rate of inflation. The Consumer Prices Index (CPI) fell by 0.5% in April to 3%, whilst there was a smaller fall in the Retail Prices Index (RPI) which dropped by 0.1% to 3.5%.   The falls take inflation to its lowest level for two years and is being seen by some financial experts as part of a downward trend since September 2011 when CPI stood at 5.2% and RPI was 5.8%....