No, this is not a nick name for my wife but what the Bank of England is affectionately referred to. In fact its full title “The Old Lady of Threadneedle Street”.
This is not a history lesson – we haven’t got time for that here – but the guy who currently runs this fine establishment, and the recent predictions he has made, are currently coming in for a bit of criticism! In fact, at a recent Treasury Select Committee meeting, one MP referred to the Bank as like a ‘petulant boyfriend’ blowing hot and cold!
The Bank, established in 1694, has many functions – printing money, setting interest rates and assisting the Government with running the country and its economy are but a few.
So many people rely on the boffins at the bank for forecasting and predictions. Hot topics at the moment include; when are interest rates going to increase? What is happening with inflation? How does the jobs market affect this?
The bank has previously stated that if the unemployment figures fall then they would consider a rise in interest rates. Unemployment fell, but the rates stayed the same. They then went on to say if inflation fell they may consider an interest rate rise. Inflation fell but rates remained the same.
Unemployment has again fallen but because wage increases are not happening, that’s right – interest rates are not going to rise yet!
So basically, hot and cold!
Whatever the powers that be decide, in my opinion it’s up to each of as individuals to be sure we are making the most out of our savings, putting the right amount of money in our pensions or getting the right mortgage deal.
Relying on the experts could lead to a falling out!
If however you need some friendly, local and honest advice, here at Poole Townsend we have advisers who can help you with your fiscal needs whatever they are. Warning – we can’t work miracles!
Call (01229) 811811 to talk to a financial adviser today or email Derek Pearce firstname.lastname@example.org