ICR279: They’ve only gone and put up interest rates
This week we’re looking at the interest rate rise; what does it mean for the economy, investment markets and your personal finances?
Interest rates in the UK doubled this week, from 0.25% to 0.5%.
Is this the start of a trend towards higher interest rates? Did it come too soon for the fragile economy? What does it mean if you’re a borrower or a saver?
-Wages have fallen in real terms for the first time in three years. The latest official figures show wages down in real terms by 0.4% in the year to April 2017.
-Manufacturing growth was stronger last month, higher due to stronger domestic demand and export orders. The latest IHS Markit/CIPS purchasing managers’ index rose to 56.3 in October, up from 56 in September.
-The Bank of England has warned as many as 75,000 financial services jobs could be lost as a result of Brexit. The number is being used by the Bank as a “reasonable scenario”, especially if no specific UK-EU financial services deal is reached.
-UK house price growth rose in October to reach a three month high. The latest figures from Nationwide suggest pressure on household budgets continues to weigh on the market.
-Seven in 10 couples don’t consider pensions during divorce proceedings, leaving women short-changed by £5bn every year. This is according to new research from Scottish Widows.
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