Ratings cut for banks sparks fears consumers will face higher interest rates

A number of UK banks have seen their credit ratings cut overnight, sparking fears that borrowers, especially businesses, could find it harder to get finance and be forced to pay higher interest rates. Moody's, the credit rating agency, has downgraded a total of 15 worldwide banks and financial institutions including Royal Bank of Scotland, Barclays, and HSBC. Barclays suffered the biggest cut in the UK, by two 'notches', from Aa3 to A2; HSBC and RBS were cut by one 'notch'. The downgrades appear to be a result of the crisis in the Eurozone and concern that governments could withdraw support for banks in ...

No change to interest rates, no further Quantitative Easing

The Bank of England have left interest rates on hold and decided against extending the existing £325 billion program of Quantitative Easing (QE). Despite the International Monetary Fund (IMF) calling for a cut in UK interest rates the decision to leave rates at 0.5% was hardly a surprise. ‘Wait & see’ The IMF also suggested that the Bank should extend the program of QE and some observers had predicted that this advice would be followed. However it seems that the Bank has decided to adopt a ‘wait and see’, monitoring both inflation and the wider economy, before making their next move. At least one ...

Interest rates on hold again

The Bank of England’s Monetary Policy Committee (MPC) has left interest rates on hold at 0.5% for a further month. It also announced there would be no increase to the existing program of Quantitative Easing (QE). Interest rates Our advisers can help you get your savings working harder for you The Investment Sense team of Independent Financial Advisers in Nottingham Contact our ...

Housing round up: House prices fall amid mixed messages for first time buyers

Housing & mortgage round upThe latest Halifax house price survey is out, first time buyers see a rise in the availability of high loan to value mortgages and the CBI suggest a novel way to help people buy their first home. Halifax house price survey The latest Halifax house price survey shows that house prices rose by 1.2% in October; however this seemingly positive news was tempered by the fact that prices actually fell by 0.3% over the past quarter. Quarterly movements in ...