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MPC warns of further rate rises

The Monetary Policy Committee has sparked further fears of a housing market slowdown after Mervyn King, governor of the Bank of England, warned of more rate rises before of the end of 2007.

The governor, speaking to the Confederation of British Industry in Cardiff, told delegates that: “market expectations of where Bank rate will be at the end of this year have risen from 5% in the middle of last year to 6% now”.

King explained the MPC’s caution towards spiraling inflation had led to the two rate rises in 2007.

Today’s news of inflation dropping to 2.5% will please King and his Committee.

King adds: “The MPC will be watching closely the indicators of capacity pressures, pricing intentions and inflation expectations.

“If these indicators remain elevated, the MPC may need to take further action.

“There is no simple or self-evident answer to the question of what path of interest rates will be necessary to bring inflation back to the 2% target and keep it there.”


IF offers five-minute decision in principal via

Intelligent Finance is to offer a five-minute online decision in principal via already offers online applications through ING Direct and is working towards deals with other lenders. Francis Ghiloni, marketing and business development director of, says: “The mortgage market has a well-deserved reputation for flexibility so it is surprising that many lenders have […]

A bad week for the HIP industry

Borrowers got a reprieve last week with the Bank of England’s decision not raise interest rates in June. The Monetary Policy Committee froze the base rate at 5.5% – and a good job too for many people.

The FSA will probe private equity risks

The Financial Services Authority will continue to probe the risks posed by private equity of market abuse and conflicts of interest. The regulator today published its feedback to Discussion Paper 06/6 Private Equity: A discussion of risk and regulatory engagement, which examined the impact that growth and development in the private equity market has on […]

Green claims for EPCs are fatuous

I have to admit that I’ve not been particularly green in the past. Bottles, papers, tins, food waste – landfill the lot. And in the garden, bonfires, barbecues and patio heaters have always been de rigeur in our household.

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Guide: how to… audit your auto-enrolment scheme compliance

As the Pensions Regulator starts to bare its teeth and the changes mentioned in the Budget and Queen’s Speech start to come into force, it is essential that you understand your scheme and the processes you need to undertake to ensure it remains compliant. Our second re-enrolment guide looks at how to audit the key areas of your auto-enrolment scheme.


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