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.
Over the years, the trend for South African nationals to seek out new lives and experiences in Portugal has continued to grow and grow; I myself made the move back in 1988 as a fresh-faced economics graduate from Witswatersrand University in Johannesburg, and I’ve never looked back. It’s easy to see the appeal for South Africans – the year-round sunshine and vast expanses of Atlantic coastline are a familiar part of daily life, just as they are back home – but the secure location and easy access to the rest of Europe is something really special. Being as there’s over 11,000 KM of distance between the two countries, a mere 12 hrs by plane give or take, there are going to be some big differences in the way of life, even if there are those obvious similarities. It’s probably advisable for any emigrant to arrive armed with a willingness to accept how things are done in their new home country rather than try to carry on as before and hope for the best. This is never more true than when dealing with your finances.
When I first meet a client it takes time for us to get to know each other, and every single person is different with different needs. However, at the root of those needs is usually the desire to find out how best to keep all those hard earned savings, investments and pensions as tax efficient as possible.