Bank Rates Not to Increase in 2011?

The economy has suddenly stalled on the free-riders, and the UK has stopped being jubilant in quelling fears that there is no wall against a recuperating economy in the new era. But what has come as a reprieve for most businesses as well as the Government, the Bank of England poll has stated that there is a very low possibility of banks in the country raising their interest rates in the current year. This, according to most London accountants, is good news for the consumers!


This trend of hiking interest rates or repo rates as often they are called, can be a vicious blow on the economy, albeit for the fact that it helps control inflation but pulls the whole system down by default. A case in point is that of two other economic giants in contrasting parts of the world – the USA and India.

While the USA is fighting to secure a debt deal that will raise the debt ceiling and negate any default that may cause the already scarred economy to lose consciousness, the Indian economic progress is being projected as to be tied down by the 0.50% hike in repo rates by the RBI (Reserve Bank of India) – which is said to be almost double of the hike that traders and businesses expected in this rising inflation.

The power of rising bank rates can be enough for an UK economy to stall completely – which has already been hurt by the war against terror, the Recession and spending cuts that have come to no avail in the recent times.

Do let us know your predictions for the year 2011 in the financial sector, in the comments section below!

Banks Hit by a Slow UK Economy

The UK economy, according to a lot of reports had been stalling and despite the efforts of the Cameron-Clegg government, the picture does not look as rosy as it had been predicted. A number of London accountants and financial experts have pointed towards the staggering economic slowdown to the parallel sluggishness in the business of banks in the country too.


A recent survey by the Confederation of British Industry has opined that a lot of banks have been hit badly by the recuperating economy and its slow recovery from the Recession – a sign that will not make too many people happy, especially the bank employees who had been issued a job cut notice in the last week of May.

However, all is not lost according to the CBI, which says that due to the fact that the austerity measures as well as the monetary boosts for economic recovery being fed into the economy is slowly coming into play, the pattern will soon look upwards again.

The financial sector has also opened up despite the number of job cuts announced by the banks last month (over 15,000) – with more and more people finding jobs in the allied arms of the finance sector of the economy. This includes tax accountants and chartered accountants in London, all of whom have gained more authority and liability with the responsibility of averting another Recession resting solely on their shoulders!

Do you think you are confident of investing in the banks yet? Or would you rather wait? Let us know through your comments below!

A Weak Economy Can Crumble Under Inflation Threat

According to many experts and some veteran London accountants who have been watching the UK economy for some months now, the new inflation threat to the UK economy can cause it to crumble yet again – weak as the latter is already!


What had been only a 2.9% inflation rate in April has jumped to a sharp 3.9% in June itself, which is the highest according to the survey in the last 6 years! So what had actually been slow or non-existent prior to the Recession, has jumped up into national reckoning post the financial crisis in 2009-2010.

As for the local populace, Britons are already nervous about how such suggestions need to be interpreted. While there is no immediate need to go bonkers on it, there is pretty much a lull calm like before a storm. However, according to financial experts, the climate for purchasing gas well as the housing prices environment should all coincide to provide with a blanket against a sharp fall again.

The best news of the day, however, is that the austerity drive might just help the weak economy cling by its teeth to the cliff – as most of the inflation is supposedly to fall under the radar with the Clegg-Cameron government’s former strategy.

What would you suggest? A lot of expatriates and Britons have tried to get through to the government and financial departments with their suggestions and feedback on ways to stave off another economic breakdown. This Blog can also be a platform for the same!

Comment and let the world know!