Blog - Archive for the ‘Economics’ Category

2018 Budget

29th Oct, 2018

  Today (29th October) the Chancellor of the Exchequer, Philip Hammond, announced his second Autumn Budget. Traditionally the Budget is presented on a Wednesday, and Mr Hammond was keen to insist this change was not made to avoid his speech falling on Halloween. As usual the Budget covered everything from changes in welfare to changes […]

Read More

Investment markets: will there be a crash?

16th Aug, 2018

  It is very easy to find articles and videos which suggest there could be a crash in investment markets. So is this correct? The easiest answer to this question is: nobody knows. The best answer is: it really does not matter, as long as the following points hold true: Your investments are diversified Your […]

Read More

Interest rates rise 0.25%

2nd Aug, 2018

The Bank of England’s Monetary Policy Committee has voted unanimously to hike interest rates from 0.5% to 0.75%, taking the Base Rate above 0.5% for the first time since March 2009. In this post I have answered some common questions about this change. Many mortgages and new retirement annuities will be affected by this change. […]

Read More

Bank of England defers interest rate hike

10th May, 2018

At its May meeting, the Bank of England voted (7-2) to maintain it’s base interest rate at 0.5%. This was in spite of earlier indications it would raise rates by 0.25%. In this post I set out the reasons why the Bank of England has backtracked and the implications for financial markets. If you are […]

Read More

Interest rates remain at 0.5% – but are expected to rise sooner than expected

8th Feb, 2018

Today (8th February) the Bank of England’s Monetary Policy Committee (MPC) held its monthly interest rate setting meeting. The vote to hold the base rate at its current level of 0.5% was unanimous and was in line with analysts’ expectations. However in a surprise announcement the Governor of the Bank of England, Mark Carney, said […]

Read More

Hung Parliament: what happens next?

9th Jun, 2017

As I’m sure you know, the 2017 general election has ended in a hung Parliament which means no single party has enough seats to command a majority. In this post I explain what the possible outcomes are from here and the short term effect this has had on financial markets.

Read More

US interest rate rise

14th Dec, 2016

America’s central bank, the Federal Reserve (or “Fed”), has increased its target interest rate by 0.25%. This takes the target from 0.25 – 0.50% to 0.50% – 0.75%. In this post I explain the key implications of this announcement.

Read More

European Central Bank extends its bond-buying programme

8th Dec, 2016

The European Central Bank (ECB), which is in charge of monetary policy for Eurozone members, has announced it will extend its bond-buying programme. In this post I explain what this means and the key implications of this announcement.

Read More