View more on these topics

Bank chief economist eyes rate rise

Andy Haldane

The chief economist of the Bank of England has revealed he may vote to raise interest rates in the second half of the year.

The BBC reports that Bank of England chief economist Andy Haldane (pictured) has said leaving a rate hike until too late could lead to steeper rate rises in the future.

The Monetary Policy Committee this month voted to leave interest rates at their record low of 0.25 per cent for another month.

Mr Haldane has revealed he considered a rate rise in June but decided to wait.

Royal London Asset Management economist Ian Kernohan says: “Having thought there were only two hawks left on the MPC, it is now clear there are three.

“Mr Haldane clearly considers a tightening is needed well ahead of market expectations.”

The value of the pound climbed above $1.27 after Mr Haldane’s comments, having fallen earlier in the day following the Queen’s Speech.

But Governor of the Bank Mark Carney said earlier in the that “now is not yet the time to begin” raising rates.

Kernohan adds: ‘Our own view is that the impact of political uncertainty on business confidence and the continued squeeze on household real incomes make a rate rise unlikely.’



Harrods Bank halts new mortgage business amid sale rumours

Harrods Bank has stopped taking mortgage applications for three months, Mortgage Strategy can reveal. The world-famous department store’s banking arm offers residential mortgages between £1m and £10m and buy-to-let loans between £1m and £5m. It also handles personal loans, savings accounts and gold bullion services. A Harrods Bank spokeswoman would not comment on the situation. […]


Lloyds keeps top spot in 2016 but smaller lenders forge ahead: CML

Lloyds Banking Group was the biggest 2016 lender by gross volume, but smaller lenders are growing market share rapidly, according to new figures from the Council of Mortgage Lenders. The CML says the top ten lenders controlled 84 per cent of gross lending in 2016. Lloyds kept the top spot, but its market share declined […]

lifetime lease purchases

What is a lifetime lease purchase?

Lifetime lease purchase deals involve raising finance but not on current properties. Rather, they are taken out when consumers move home. They are called lifetime lease schemes. Although not identical to sell-and-rent-back options, they are unregulated too. Lifetime leases are designed for clients who want to move but either cannot afford to or don’t want […]

Canada Life annual IHT survey results

75% of wealthy unaware of new residence nil rate band IHT allowance Just 4% were aware the new allowance will be up to £175,000 per individual Lack of awareness of IHT rules means families risk paying a bigger bill than they need 83% think the current inheritance tax rules are far too complex A remarkable […]


News and expert analysis straight to your inbox

Sign up