The Global Month Ahead – An insight into April 2011

In our regular feature Seven Investment Management (7IM) look forward to what the month ahead might hold. With the effects of the Japanese earthquake still being felt on the world's stock markets and the spectre of a prolonged conflict in Libya what will April hold for world markets? United Kingdom - Fixed Income Outlook Key Issues The UK has some relatively good fundamentals in that the government is addressing its large deficit in contrast to the situation in the US and Japan. The 28,000 rise in unemployment in March, with public sector cuts to come, will test the government’s resolve ...

Homeowners advised to prepare for interest rates of 5% by MPC

Mortgage borrowers need to bear future interest rate rises in mind to help them better cope with an increase in repayments. Interest rates will return to normal and homeowners should prepare for their mortgage payment to rise according to a Bank of England staff member. Householders have been warned to prepare for a tenfold rise to the record low 0.5% interest rate by a member of the Monetary Policy Committee. Paul Fisher said that interest rates will have to go back up to the standard position of around 5%. He told The Daily Telegraph that the MPC hopes that "people are aware that interest rates at some point will go up again and that they will head back to a normalised position. What [the committee needs] to do is to trigger the mindset in people that that’s where rates will eventually go back to".