Monetary Policy and Interest Rates – Page 4

DANGER: Even estate agents think house prices rising too fast

September 13, 2013 Ros Altmann Comments 0 Comment

Calls to cap house price rises are clear sign of housing bubble RICS is shouting from the rooftops – are the authorities listening? No more ‘Help to Buy’ we need ‘Help to Build’ Clear signs of housing bubble: The RICS has issued an unprecedented call for a cap on house price rises. This suggestion, from the industry most closely associated with the housing market, clearly indicates that house prices are in bubble territory. It has been clear for months that…

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Blinkered Bank of England ignoring dangers of low rates as economy picks up

September 4, 2013 Ros Altmann Comments 3 comments

4 September 2013 Bank of England should take off its blinkers and look at the economic evidence Low rates are distorting economy – causing borrowers and savers to take too much risk MPC should consider a small rise in rates now As the Bank of England Monetary Policy Committee meets, I urge its members to look carefully at the evidence showing a stronger UK economy and start the process of increasing interest rates to more sustainable levels. Ultra low interest…

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Following the Bank of England’s statement

August 7, 2013 Ros Altmann Comments 0 Comment

7 August 2013 Three more years of misery for savers and pensioners Rates remaining at emergency levels whilst there is no emergency Relying on borrowing and house price inflation to drive growth is how we got into the crisis Anyone approaching retirement and potentially buying an annuity, anyone running a pension scheme and anyone saving for their future will have been disappointed by today’s masterly statement from Mark Carney, potentially promising three more years of emergency, ultra-low, interest rates. The…

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Low rates still damaging firms with pension liabilities

August 7, 2013 Ros Altmann Comments 2 comments

7 August 2013 Here is my latest piece, looking at the recent figures on UK pension deficits. Firms are still struggling with the effects of QE and continued low interest rates, plus above target inflation. I hope that Mr. Carney will not overlook these negative effects of low rates, although I fear it is not an issue he will take seriously. Do give me your thoughts. Comment below. FTSE 100 pension deficits still rising despite strong markets and higher employer…

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