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Rebel Sentance votes for base rate rise again

Andrew Sentance, member of the Monetary Policy Committee, has voted for a 0.25% rise in interest rates in August.

It is the third month in a row that Sentance has voted to increase the base rate but all other members voted for no change.

That includes new member Martin Weale who brought MPC’s total membership back up to nine after two months at eight.

On the topic of quantitative easing, the MPC says it is ready to “respond in either direction” as the balance of risks evolve.

Vicky Redwood, senior UK economist at Capital Economics, says the MPC is in wait and see mode.

She adds: “On the face of it then, the minutes are perhaps a bit less dovish than the Inflation Report – which clearly suggested that inflation would undershoot its target without a further policy loosening. But since the meeting and the Report, we have had the news that core inflation slowed sharply in July.

“What’s more, we still think that the MPC is too optimistic about the growth outlook, the numbers behind the Inflation Report released today show it expects GDP growth of 2.8% in 2011. In our view, further quantitative easing is likely – and at the very least, rates are unlikely to rise any time soon.”


Home & Capital survives acquisition

Equity release specialist Home &; Capital says it is still open for business following the acquisition of its parent Sovereign Reversions by Grainger, owner of Bridgewater Equity Release. Graeme Marshall, chief executive of Sovereign, says Home &; Capital continues to trade as a separate brand within the Grainger group and nothing has changed in the […]


Three lenders waiting for go-ahead from FSA

Three new mortgage lenders have applied for authorisation from the Financial Services Authority. Responding to a Freedom of Information request from Mortgage Strategy the FSA has confirmed that it has received three applications for authorisation to undertake the activity of entering into regulated mortgage contracts as a lender since the beginning of the year. Alan […]


CML trims £10bn off its lending forecast but says B2L is on the up

The Council of Mortgage Lenders lowered its gross lending forecast for the year by £10bn last week, but revealed that buy-to-let lending is increasing. It is now predicting gross mort-gage lending of £140bn for 2010, £10bn lower than its original estimate of £150bn in November 2009. The trade body has also lowered its arrears and […]


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