The recent decision by the Bank of England to keep the base rate at 5 percent was as per expectations according to the Abbey National.
A spokesman from the Abbey National explained that the need to manage an economy that is slowing down meant it was highly unlikely to see the interest rate increased, since that would slow it further. The rise in inflation, up to 3 percent in April also meant that a rate reduction was not going to happen since that would further fuel the inflation rate.
Looking forwards the Abbey National feel there may be a cut in the interest rate later in the year, though it needs the inflation rate to be kept under control for that to happen.
A study by Natwest Bank has found that more workers than ever before are doing jobs in countries other than the UK.
The study found that more than 200,000 brits went to work in other countries, the Natwest Bank data based on 2006 figures, the most recent available. Over 40 percent of these workers were at a managerial or professional level, taking their skills and knowledge to develop businesses abroad.
When asked about the reasons for moving these overseas workers said that they were lured by a better job and better pay. The average salary for these expat workers is GBP67,000, and when combined with a lower cost of living and better living standards generally it is clear to see how attractive such a proposition can be said a Natwest Bank spokesman.
The Prime Minister, Gordon Brown, apparently told the people of the UK that Northern Rock could be sold for a profit in the future while his own advisors had said otherwise.
Gordon Brown had stated in a press conference in February that Northern Rock could be sold for a profit when the financial markets had recovered, though the advisors brought in to look at the options for Northern Rock had said a GBP450 million loss was the best possible outcome, with the most likely result being a loss of GBP1.28 billion. This figure was based on stable house prices, so in the current climate the loss is expected to be even greater.
The Treasury has stated that its purpose in buying out Northern Rock was to stabilise the bank and also the rest of the financial sector, not to make a profit. However Mr Brown should not have misled the public by saying a sale would generate a profit. Oh to have an honest politician, we can but dream.
