View more on these topics

Bank holds base rate at 0.5%

The Bank of England has held interest rates at 0.5% for the 20th consecutive month.

It has also decided not to pump any more money into the economy through its quantitative easing programme.

Ben Thompson, director of mortgages at Legal & General says whilst the doommongers and naysayers will have been most upset to see the recent positive GDP numbers, it is still too early to sit back and relax as the economy recovers, and way too early to return monetary policy to anything like normal.

He says: “It remains our firm belief that Bank Base Rate will remain frozen through this winter, and in all likelihood unchanged throughout the whole of 2011.”

Barry Naisbitt, chief economist at Santander UK, says: “A familiar story – there was no change from the MPC on rates again today.  However, after last month’s three way split vote, financial markets will be looking to the minutes of the meeting and, more particularly, the Inflation Report to get a better sense of how the MPC is now thinking. 

“For the past few months one MPC member has been voting to raise rates and last month another member voted for more quantitative easing.  With inflation still well above its target and the increase in GDP in the third quarter ahead of market expectations, it will be interesting to see if the voting pattern changed.”

Recommended

ED STUART-BROWN, HEAD OF PROTECTION SALES, FRIENDS PROVIDENT

Single policy could be best for couples

According to the Office for National Statistics one in five men and women divorcing in 2008 had been divorced before. This proportion has almost doubled since 1981 when the figure was 11%. Some 69% of divorces in 2008 were among couples whose marriage was the first for both parties. Add to this the fact that […]

The GDP figures don’t mean everything is rosy

Following last week’s Q3 GDP figures one has to consider whether this changes the dynamics of the market enough to take a more positive view about switching to switch to a fixed rate.

China tech and Global Alpha: a new great leap forward

By Robin Geffen, Fund Manager and CEO

Internet giant Alibaba is exactly the type of entrepreneurial company that the high-conviction, top-performing Neptune Global Alpha Fund seeks to invest in. Established just 14 years ago in an apartment in Hangzhou, today Alibaba is larger than Amazon and eBay put together and is challenging some of the most powerful internet companies in the world…

Read more 


Important information

Investment risks

The value of an investment and any income from it can fall as well as rise and you may not get back the amount originally invested. Forecasts and past performance are not a guide to future performance. Some information and statistical data herein has been obtained from sources we believe to be reliable but in no way are warranted by us as to their accuracy or completeness. These are Neptune’s views and as such this document is deemed to be impartial research. We do not undertake to advise you of any change to our views.

Newsletter

News and expert analysis straight to your inbox

Sign up