These disappointing figures fuelled speculation that interest rates will not rise until 2016 at the earliest having been frozen at 0.5 per cent since March 2009.
The expectation that rates will stay lower for longer has been encouraged by the low-inflation environment. The UK March consumer prices index rate of inflation stayed at the 0 per cent recorded in February – despite forecasts falling petrol prices and the supermarket price war would turn the rate negative.
The impact of very low interest rates continues to reverberate around the financial system. For example bond markets are showing signs of increasing volatility and can no longer be relied to be either a safe haven or a predictor of economic activity. Companies are buying back shares using cheap loans rather than investing for the future, whilst certain badly run hedge funds are taking excessive risks with borrowed money and leaving their investors with the downside when things go wrong.
With little hope for savers that their money will earn them a good rate of interest sitting in a Bank, or invested in government bonds, be it in the UK or Europe , now is the time to speak to the investment specialists at Blacktower. We are here to help you find the right solution to make your money work for YOU.
by Christina Brady, Regional Manager Costa Blanca
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
A new report published by the Cabinet Office has found that expat UK pensioners will be in need of sound expat financial advice should Britain choose to leave the EU following June 23rd’s referendum. The report states that any such Brexit would cause a “decade of uncertainty” for expat UK pensioners, potentially prompting the need for urgent expat wealth management advice.
Great news for the clients of expat financial services: the government has announced proposals to abolish the 15-year time limit on the right of expats to participate in UK general elections.