In the face of mounting media speculation, Bank of England governor Mervyn King last week claimed that the outcome of this Thursday’s Monetary Policy Committee meeting is not a done deal.Try telling the pundits that. Most seem positive that a 25 basis point rise is a certainty and that the market will be under the shadow of a 5% base rate by Christmas. King’s assertion that despite inflation being above target the decision could go either way has fallen on deaf ears. Most are certain of a hike and they aren’t happy. The main concern is that it could dent consumer confidence. David Bexton, managing director of smartnewhomes.com, echoes many when he says: “I strongly urge the BoE to carefully think about the implications before raising rates this month.” But more worrying in the longer term is the implication that the BoE could be flying blind due to a lack of reliable data collected by the national census. King has criticised the lack of data on the size of the country’s workforce, scale of unemployment and earnings growth, and has called for more funding for the next census. The government’s measure of inflation also came under attack from King, who slammed the Consumer Price Index for not including house prices. Although Eurostat, which is responsible for EU statistics, is conducting an experiment to see how it could bring housing back into the national measure King warns this is unlikely to happen in his lifetime. This is a sad statement and perhaps an insight into why the government thought Home Information Packs were a good idea. A lack of joined-up thinking based on imperfect information has been one of the hallmarks of the Labour government. But the picture of the housing market at the moment, based on figures from the Council of Mortgage Lenders among others, shows prices continuing to rise. It seems a good bet the pundits are right and that the BoE will slam on the brakes sooner rather than later despite King’s protestations.
Easier2move has forged a deal with retirementhome- search.co.uk to provide conveyancing services to its clients. The service will be white-labelled under the retirementhome- search.co.uk corporate umbrella.
Some 27 firms in the debt resolution industry have founded an industry body for debt resolution companies by creating the Debt Resolution Forum.Subsequently, a further seven organisations have said they wish to consider participation in the organisation, which will provide a voice for the industry and which will set best practice standards for members which […]
Intermediaries dealing with buy-to-let cases consider speed to offer to be by far the most important factor when servicing their property investor clients, says Mortgage Trust. Half of intermediaries consider speed to offer to be the most important element, which is almost double the percentage who regard competitive rates as the most crucial asset. The […]
The National Home Energy Rating scheme has launched a new training and assessment programme to ensure that there will be enough qualified energy assessors in time for June 2007.The programme will ensure that government plans to introduce Energy Performance Certificates next June will definitely happen.NHER’s domestic energy assessor programme includes eight days of intensive training […]
The UK Pensions Awards shine the light on excellence and recognise the advisers, providers and investment managers that offer the highest level of innovation, performance and service to occupational pension schemes and their members. This year’s awards looked at advisers and providers across 31 different categories and were rigorously judged by a panel of senior […]
News and expert analysis straight to your inboxSign up