Article(s) associated to this keyword
- Tesco Joins Mortgage Market
- Chamber Of Commerce Calls For Rate Cut
- Inflation Below One Per Cent In 2009
- Recession Looms For Britain And Europe
- Extend The Loan Period To Cut Repayments
- Hard Times Ahead, Warns Governor
Britain’s biggest supermarket is joining the mortgage market, to be launched after it buys RBS out of its share of the Tesco Personal Finance joint venture.
In its latest economic forecast the British Chamber of Commerce has called for interest rates to be cut to help stave off recession. It reckons that recession is more of a threat than inflation. Interest rates, it says, should be cut when inflation has peaked - expected to be in the autumn.
It may seem unlikely now as inflation has just reached 4.4%, but leading economists are forecasting inflation of one per cent in 2009. This is because the current figures are influenced by rising oil prices, but next year they will be replaced by the now falling price of oil.
Both Britain and Europe are facing recession as Bank of England Governor and European economists warn of difficult times ahead. Projections are now for economies to shrink and many in the Euro zone are already doing so.
At a time when household bills are on the rise, people are looking for ways to keep their mortgage costs down. One way is to extend the period of their mortgage loan, taking it above the normal 25 years. This can keep monthly repayments down, but costs more in the long term.
With inflation above target, Bank of England Governor and Chancellor have both urged restraint on pay rises. However, there are signs that Unions are beginning to flex their muscles.
