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Bank of England says rates may have bottomed

British interest rates will probably not come down any further if the world economy grows in line with the Bank of England&#39s forecast, the central bank&#39s deputy governor Mervyn King says.

And Governor Sir Edward George repeated his warning on Tuesday that the BoE might even have to raise borrowing costs if consumer demand did not slow as expected, but stressed that the MPC might have to cut interest rates if the world economy took a turn for the worse.

But policymakers are worried that consumer debt levels are getting out of control and held off from cutting rates earlier this month for fear of stoking borrowing and house prices any further.

Asked by parliament&#39s Treasury Select Committee if interest rates had bottomed, King replied: “If the world were to evolve as in our central view, that would probably be a reasonable view.”


FSA releases Practitioner Panel report

The Financial Services Authority said yesterday that an independent survey of industry views about the financial services regulatory regime provides a valuable insight which will help the FSA as it continues to develop the system of financial regulation. FSA Chairman Howard Davies says: “The FSA was officially launched at a time when the profitability of […]

Brokers set sights on unregulated products

One in ten mortgage brokers intend to avoid the new FSA regime by concentrating on unregulated products.Research from the Barrowstead Consultancy reveals 8% of intermediaries expect to leave regulated business behind to avoid the costs and pressures of statutory regulation.In its proposed form, the FSA regime excludes buy-to-let, second charge and home reversion schemes. And […]

Seller&#39s packs will modernise home buying and selling process, says Rooker

Seller&#39s packs will be central to the government&#39s major reform of the home buying and selling process, housing minister Jeff Rooker said yesterday. He said the packs – one of the main themes of the draft Housing Bill – were aimed at modernising the current archaic and inefficient system in England and Wales. He told […]

Personal debt reaching record level

Record numbers of debtors are contacting Citizens&#39 Advice Bureaux throughout the country, with a quarter of households reporting they have been in financial difficulties in the last 12 months, according to the Department of Trade and Industry. The figures highlighting the growth in debt problems coincide with the forthcoming publication of the Child Poverty Action […]


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