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Wages will struggle to rise, says Assetz

Assetz has warned that the rate rise will scare businesses into low wage negotiations in Q1 2007.

The property investment company has assumed that the surprise rise is an attempt by the Monetary Policy Committee to curb inflation.

Stuart Law, managing director of Assetz, says: The MPC has delivered a warning shot to businesses with this surprising rate rise so early in the year.

As we enter the main wage bargaining period the Bank is shocking businesses into restraining wage rises by increasing their existing costs and showing willingness to raise rates further, thereby helping curb inflation.

This rise is unlikely to be related to house price growth, as this is caused by the imbalance between supply and demand rather then low borrowing costs.

We expect that wage inflation will be kept under control at 4% or less, while inflation is expected to drop back down to 2% by the end of the year.

“This, combined with falling energy prices, confirms that the economy is on an even keel and we are likely to see the Bank holding or lowering rates in the coming months.”


Straw Poll: Brokers evenly split on lender retention policies

Mortgage Strategy Online readers are evenly split on whether the remortgage market will fall in 2007 because of lenders’ retention policies, with 49% saying yes and 51% saying no.This week, Mortgage Strategy asks: “Do you expect the UK housing market to remain buoyant in 2007?”

First-timers in London face 3% Stamp Duty

Many first-time buyers in London may automatically find themselves in the 3% Stamp Duty bracket with the price of an average first-time property in the capital exceeding 250,000.

Goldsmith Williams sponsors MS Summit

Conveyancing firm Goldsmith Williams is to sponsor Mortgage Strategys Packager Summit in the south of France. The two-day event is expected to welcome around 75 packaging companies which will chew over future developments in the packagers market.Running between January 24 and 26, the Nice-based summit will also see the launch of Mortgage Distributor Mortgage Strategys […]

Embrace Scottish sub-prime market

Lenders and brokers could do more to cater for the growing demand in sub-prime mortgage products in Scotland if they understood the market better, says Mark Bergin

The future of active management is now

Fees under pressure. Regulatory moves against closet indexers. Rapid advances in financial technology. Shifting sentiment among investors. Such mounting challenges have led to widespread speculation about active management’s shrinking future. But a closer look inside intelligent portfolio construction today tells a story of expanding roles, added value, and innovative risk-adjusted, lower-cost solutions. Four investment experts […]


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