Balloons have a habit of bursting

Posted on Posted in Bank of England, Inflation

While all eyes are on Mark Carney following the announcement that he is to stay on as Governor of the Bank of England until 2019, I wrote in August about the Bank’s decision to reduce interest rates from 0.5% to 0.25%. I felt it was hasty and it is likely to see a quicker rebound than might otherwise have been the case. The Bank clearly got a bit wobbly about Brexit. Evidence from our own […]

Brexit means Brexit. But what does Brexit mean for SMEs?

Posted on Posted in Bank of England, Exports, SMEs

The Federation of Small Businesses and The British Chambers of Commerce met with Theresa May earlier this month as a way for the new Prime Minster to ask the SME community what they need post-Brexit. The Prime Minister has assured small businesses that cuts to EU funding will be replaced and that the SME sector would be “at the heart” of the renegotiation strategy. But what exactly does Brexit mean for Britain’s small businesses? Can we […]

Should you loosen your belt when you’re on a diet?

Posted on Posted in Bank of England, Brexit, Capital requirements

I have mixed feelings about Mark Carney’s speech yesterday, when he announced that the Financial Policy Committee would ease banks’ capital requirements, encouraging them to lend. Relaxing capital requirements to ease funding availability for individuals and SMEs may work. It’s a bit like targeted QE and if we can stabilise sentiment and continue growth with a weaker pound, it may prove a masterstroke. But I can’t help the nagging feeling that it’s a bit like […]

The unholy Trinity?

Posted on Posted in Bank of England, Brexit, Financial Conduct Authority, The Treasury

  It would be tempting to blame Brexit for any forthcoming downturn, but its roots run deeper. The Government seem hell bent on increasing home ownership again. Probably because it brings with it increases in Conservative votes. So, it was with some surprise that we witnessed the Chancellor attack its existing supporters by increasing the stamp duty on Buy to Let purchases, reducing the tax efficiency of such purchases and complicating the taxation process too. If […]

Is SME lending about to catch a cold?

Posted on Posted in Bank of England, Bibby Financial Services, Commodities, International Monetary Fund, Mark Carney, Oil prices, Stock markets

Amid concerns over oil prices reaching a low of $10 a barrel, stock markets around the world tumbled yesterday. At 4pm (GMT) The Daily Telegraph reported that £60 billion had been wiped off the FTSE 100 as the day’s trading looked set to close 4 per cent down. As market analysts assess the impact, many will point the finger of blame at volatility in the East. However, the catalyst isn’t just one thing but many: […]