Inflation and the six-million-dollar man
WHEN I think back to ‘how simple life was’ when I was a wee, dark-haired chap, I feel the words from the journalist, Mary Schmich, poke in my back: “Accept certain inalienable truths: Prices will rise. Politicians will philander. You, too, will get old. And when you do, you’ll fantasise that when you were young, […]
Where did the 2% inflation target come from?
ASKING where the two per cent inflation target came from is an interesting question, but the bigger ask might be why central banks have an upward target for inflation at all? It would seem to be a good idea if you cared about society that you would target for prices to fall rather than rise, […]
Interest rates rise to 4.5 per cent
UK inflation is expected to fall slower than previously thought as food prices remain stubbornly high, the Bank of England has said, as it raised interest rates for the 12th time in a row. Seven members of the Bank’s Monetary Policy Committee (MPC) voted to increase the base interest rate to 4.5% from 4.25%. Food prices have […]
Attraction of 6.5% dividends
The news that BP is to reinstate its dividend is a welcome one, and investors with all but zero interest rates may well be flocking back to the stock. Investors are being subjected to top end building society interest rates of around 3%, whereas inflation is currently outstripping that. It’s a very difficult position for […]
Fix my mortgage at 2.14% or gamble?
Should I fix my mortgage or keep it at a standard variable rate? There are two parts to the answer. The first relates to what risk you can take with your monthly outgoings and the other to the update on whether or not inflation really exists. Speak to an independent mortgage broker for advice but […]
Banks’ Contrived Combination Investments
I have seen some advertisements for combination investments with Barnsley Building Society and Yorkshire Building Society. They offer a high interest rate, but it appears that I don’t get their savings rate, unless I go into another investment plan. Most banks and building societies have been ‘found out’ over the years and are left wanting in terms […]
The bottom of the UK housing market?
It was only a matter of time before house prices eventually would be supported by quantitative easing and lower interest rates. The Bank of England have not made the same mistake as last time and were aggressive in their monetary policy which has clearly had an impact on the confidence levels of the homeowner.
Banks with monetary dyslexia
‘State owned banks’. Boy do I detest that statement. That’s were the ‘government’, known to you or I as the UK tax payer, has promised to protect banks who have shown they are clueless in running a business. Let’s remember that Banks are responsible for 79.15% of all complaints upheld by the Ombudsman. (1) Lloyds tops the shop, holding three of the first eleven places. This appalling advice has cost the tax payer dearly in bad advice. The government’s response to this is to protect them, whereas I suspect if they were a less important sector on the ‘contribution to UK tax’ they would just have been closed as a national embarrassment.
Unsuspecting Business People Refinance Banks
A pre-budget report just before an election is never going to be too painful. If we expected anything other than vote winning ideas we were unrealistic in our expectations. Such was my lack of interest; I avoided doing any of my normal phone ins and newspaper/website contributions and went to watch Snow Patrol with the […]
Business People Bail out Banks
I was speaking to someone a moment ago who asked me what I did. ‘I am an independent financial adviser’. I said. ‘Ah, you are the cause of the problems in the economy then!’ He blubbered. I responded with ‘yep, every last bit of it, every last bit’.
UK Banks Still Cash Constipated
We all know the banking sector is one of the biggest cash cows for the government in terms of tax. The banking sector has however really let itself down. The phrase ‘a job in the bank, is a job for life’ sits firmly along with that of ‘bricks and mortar boy, bricks and mortar’ and […]
Tax Kills
I read an interesting report which showed that 10 million people in the UK (a third of the working population) are not saving for retirement. That will be an interesting demographic time bomb; you can expect strong measures in terms of employer and employee compulsion into pensions to follow.