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No change on cards for rest of year as MPC holds base rate once more

Interest rates look increasingly likely to remain on hold for the rest of the year, following the Monetary Policy Committee’s decision to freeze them at 0.5% last week for the 37th consecutive month.

It also voted to maintain the size of its asset purchase programme.

MPC members were split 7-2 on whether to increase the quantitative easing programme last month, with two members wanting to boost it by £25bn to £350bn.

Chris Parrish, group treasurer at Yorkshire Building Society, says: “UK and worldwide economies remain relatively fragile and recent data from the Organisation for Economic Co-operation and Development suggested the UK economy shrank by 0.1% in Q1, tipping us back into recession.”

He says most economic commentators concur that the base rate is unlikely to rise this year.

But Barry Naisbitt, chief economist at Santander UK, says that although gross domestic product declined by 0.3% in Q4 2011, recent indicators of economic activity have revealed more positive readings.

He adds: “Given last month’s split vote on QE and recent speeches by MPC members, people will be interested in the minutes of this month’s meeting to see if anyone voted to extend QE.”


Green light for first tenancy deposit scheme in Scotland

The Scottish government has approved its first tenancy deposit protection scheme, The Letting Protection Service Scotland, which will launch on July 2. The Tenancy Deposit Schemes (Scotland) Regulations 2011 came into force on March 7 2011 following approval from Parliament. It then entered into a consultation process between December 2011 and January 2012, with the […]

My Worst Deal, BBC1, available on iPlayer

You know a programme entitled My Worst Deal about loan sharks, repossessions and bust lender Northern Rock is going to contain some disturbing tales. And so it does – laying bare a lending industry focussed on trickery and subtle deceits to make money. The show, part of a series on BBC 1, reveals there are […]

Angela Knight decides to call it a day at BBA

After five years at the British Bankers’ Association, chief executive Angela Knight has announced her intention to step down. She will leave in the summer, by which time it is hoped her successor will have been found. Knight says: “I have been at the BBA at a time of extraordinary difficulty and during a crisis […]


What employers should expect over the next five years

A major feature of our articles is looking into the Jelf Employee Benefits crystal ball to predict changes and trends that may influence the short and medium term shape of UK employee benefits.  By flagging such changes early we aim to provide our followers with the tools to make sensible and informed decisions on their benefits offerings.


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