Car Insurers Debate Over Future Profits

UK car insurers have been running an unprofitable business for 14 years. Independent market analysts, Datamonitor, say 2009 looks to be a profitable year despite the doubts

March 13, 2008

Budget Report Expectations

Chancellor Darling's Budget Report is expected to raise taxes on alcohol, fuel emissions, flights and many other issues concerning the economy. Tax burdens expected to increase on poorer families

March 12, 2008

Card Fraud Rises Again

Card fraud has increased over past year. Whilst chip and PIN technology has been successful in the UK, criminal activity overseas has increased 77 per cent

March 12, 2008

Tax Cuts Needed To Restore Confidence

Appeals for corporate tax cuts are submitted to the Treasury as it prepares its Budget report this Wednesday. Business and banking sectors are worried about the direction of the UK economy

March 10, 2008

First Time Buyers Take Hit From Stamp Duty

Stamp duty tax has not kept up with the rate of increase in house price inflation over the past decade. Yet another hurdle first-time buyers must leap over to get on the property ladder

March 10, 2008

Read all Finance News

Financial Market Disruption And The UK Economy

This month the Deputy Governor of the Bank of England, Sir John Gieve, gave a speech outlining his thoughts on the recent financial market disruption and the ongoing impact it is having on the UK economy. He also expressed his thoughts on the immediate inflation pressures stemming from the growing prices of both energy and food.

Sir Gieve was appointed as Deputy Governor in January 2006 and is also a member of the Board of FSA. The reasoning he provides behind the slowdown in the economy is related in part to the many rises in the interest rate which the UK experienced last year 2007, which rose to 5.75% following the fifth increase since August 2005.

With the next meeting of the Monetary Policy Committee just around the corner, scheduled for February 6-7th, speculation of the Bank of England adopting a more neutral stance in policy, as opposed to restrictive, may be justifiable.

Increases in food, petrol, gas and electricity prices are now coming through as a result of the fall in sterling, further pushing up our above target inflation rate. Consumer spending is consequently slowing down and along with it the property market, as house prices throughout the UK are slowly experiencing a decline. The recent disruption in our UK banking system, particularly the Northern Rock crisis and its aftermath, has seen tighter lending criteria being put into place which in turn is affecting both mortgage and credit approvals.

Sir Gieve said that "the UK's short term inflation expectations remain uncomfortably high" and concluded that throughout these testing times, the MPC must look beyond the central projection for the UK economy in order to weigh up all the potential risks, something he believes will require not only difficult judgements but also careful explanation in the months that lie ahead.

Published on February 5, 2008

Darling's Budget Report Highlights

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March 13, 2008

Lending Falls Again Says CML

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March 12, 2008

10 Tips To Improve Your Credit

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March 7, 2008

Interest Rates Kept At 5.25%

Yesterday, 6th March, the MPC decided to keep the base rate at 5.25 per cent. This decision was to be expected as the Bank focuses on the pressures of rising inflation and a slowing economy. Analysts are predicting another cut to 5 per cent to happen in May unless economic conditions weaken substantially. Whilst some feel the MPC shouldn't wait too long before the next cut, many agree with yesterday's decision... Read More
March 7, 2008

20 Per Cent Of Homeowners Fear Repayments

The UK's financial watchdog, the FSA, published a survey of over 500 mortgage holders which revealed 1 in 5 are worried about being unable to keep up with their mortgage repayments. It is estimated that 1.4 million fixed-rate or discount deals will expire this year raising monthly repayment amounts. Twenty five per cent of those surveyed admitted they had no contingency plans to meet these costs... Read More
March 6, 2008