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18-Jan-08
A member of the Bank of England's Monetary Policy Committee (MPC) has hinted that he supports a cut to the base rate of interest sooner rather than later.Deputy governor of the Bank and MPC member Sir John Gieve hinted at his support for a reduction durin...
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Jobs stats won't postpone rate cut
18-Jan-08
The latest employment figures reveal that more people got themselves jobs in the three months to November 2007, but future projections point to less healthy times ahead.With this in mind, Dr John Philpott, chief economist at the Chartered Institute of Per...
Landlords receive tax returns reminder
17-Jan-08
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London airport expansion will boost house prices
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The value of properties close to London City Airport may increase as the hub expands.In the last 12 months, passenger numbers at the airport have increased by 23 per cent.However, although many people may see this as a negative thing for local homeowners,...
Brits overspend on home improvements
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A quarter of Britons who carry out home improvement work underestimate how much the projects will cost.That is according to Halifax, which reveals that around one million people undervalue the expenses involved by approximately £4,500.It means that B...
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Print this articleJobs stats won't postpone rate cut
18-Jan-08
The latest employment figures reveal that more people got themselves jobs in the three months to November 2007, but future projections point to less healthy times ahead.
With this in mind, Dr John Philpott, chief economist at the Chartered Institute of Personnel and Development, predicted that the base rate of interest will be cut in February.
High employment figures lead to fears that inflation-busting pay will force the Bank of England's Monetary Policy Committee to hold the base rate.
However, Dr Philpott is convinced that next month's reduction is still on the cards.
"The best news of all in the latest figures is continued modest growth in pay. Even in the
relatively benign economic conditions of 2007 average pay rises across all sectors failed to keep pace with increases in the cost of living," he said.
"With economic growth set to slow markedly in the coming months and demand for labour about to cool the risk of inflation busting pay settlements is small.
"The case for an interest rate cut next month therefore remains strong despite today's good news on jobs," added Dr Philpott.
The base rate of interest currently stands at 5.5 per cent following a 0.25 percentage point cut in December.
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