Money

Updated: 05:07 EDT

Bank of England expected to leave rates on hold

While the Bank is expected to leave rates on hold at at 0.25 per cent, the clamour for the Bank to act after inflation hit 2.9 per cent this week is growing ever louder. The Bank has so far resisted calls for action, arguing that raising interest rates could kill off limited UK economic growth. But one member who has correctly predicted inflation is Kristin Forbes.

Calling relatives who are on holiday abroad will be no cheaper despite a crackdown on mobile phone charges in Europe.

Stop raising Isa limits and make them work better instead

The Isa has been a marvellous invention. It has enabled savers and investors to build greater wealth and draw more from it, thanks to tax-free growth and withdrawals. I've cheered the Isa allowance's rise to £20,000, but the time has come to stop lifting it. Instead, we need to overhaul the Isa to make it work for the modern world.

Thames Water rewarded investors with £100m in dividends last year including £26m to Australian bank Macquarie and £10m to Abu Dhabi's sovereign wealth fund.

Fed chairman Janet Yellen indicated that further rises would follow in the coming years including one more before the end of 2017 and a further three in 2018.

Inheritance is an area of personal finance that can get very complicated, very quickly and what might seem relatively straightforward at first glance, often isn't.

When you lower the rear backrests, the boot capacity is a generous 1,700 litres - easily enough space for a flat-pack wardrobe, a conked-out washing machine or a couple of bicycles.

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*Price rises to £28.98 after 18 months, £10 activation fee. For current account rewards and interest conditions may apply eg. using provider's full switching service, min deposits and direct debits. For savings, access maybe limited, min/max deposits may apply. See T&Cs.; Representative example: If you spend £1,200 at a purchase interest rate of 18.95% p.a. (variable) your representative rate will be 18.9% APR (variable).

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Markets Live: Eyes turn to the Bank of England

The Bank of England is in the spotlight today after the Federal Reserve followed the script last night and raised rates in the United States by a quarter point to 1 per cent to 1.25 per cent. The question now is whether Mark Carney and colleagues will feel compelled to follows suit given inflation has hit 2.9 per cent in the United Kingdom.

Traditionally, the Mansion House dinner was an occasion for great monetary statements in the same way that Budgets provide fiscal direction.

US hedge fund Elliott went public in April with a £35bn overhaul plan for the miner, accusing it of major underperformance and demanding major changes to structure and strategy.

The troubled phone and broadband company handed the 49-year-old (right) £1.14m overall for 2016, on top of £2.8m she was paid the previous year.

The British fashion firm said the zipped bag, which costs from £500, was an instant hit with shoppers since launching in October and it plans to extend the line.

Founded by Rob Terry, Quindell - now called Watchstone - sold its professional services arm to Australian law company Slater & Gordon in 2015.

Take a trip round Jaguar Land Rover Classic's new £7m home

Welcome to Jaguar Land Rover Classic's new headquarters in the UK - a Willy Wonka-style factory for car enthusiasts. Over 500 iconic British models will be kept at the cutting-edge facility where high-skilled specialists will service cars, restore historic vehicles and build remastered versions of legendary models.

A small building society has launched two savings bonds to appeal to those who have a strong feeling as to whether Brexit will have a positive or negative effect on the pound.

On a recent trip to Budapest via Southend booked with Flybe, I was caught out by its smaller baggage allowance - why couldn't staff have just been more understanding?

ASK TONY: Three mobile took £616 after contract ended

I ended  my mobile phone contract with Three in December 2015, giving notice in November. However, it has continued taking money from my account - and I have now overpaid by £615.78. It says that because I did not use the optional PAC code (which allows customers to take their number when they move to a new supplier), this meant my line remained live.

The concerns voiced by the Competitions and Markets Authority came in an update to its probe into the care homes market which was launched in December.

Charter Savings Bank is launching a new Cash Isa which lets savers divide their tax-free between multiple accounts, including both fixed-rate and easy access accounts.

How to avoid the travel money card traps

Holidaymakers are being hit by rip-off fees if they try to lock in good exchange rates on travel money cards. Many think they may have secured the best way of spending abroad, but they charges mean they may discover that any extra advantage swiftly slips away.

Our research found half of Britain's biggest lenders charge borrowers an 'exit fee'. Santander charges most, at £225, followed by Clydesdale Bank and Coventry BS, at £195 and £125 respectively.

The departure of Richard Harrington, who was moved sideways to the Department for Business in the post-election shake-up, leaves a newcomer with a pile of big pension issues on his plate.

Inflation rising at 2.9% a year outstripping savings rates

The 2.9 per cent rise as measured by the Consumer Prices Index is the highest since June 2013 and up from 0.3 per cent a year ago. It negates any increases in fixed rate bonds, cutting the spending power of each £10,000 to £9,710 over a year - a £290 drop.

If an insurer can prove that an animal showed signs of an illness before insurance was taken out, they can refuse to pay up, as most do not cover pre-existing conditions.

If there's one lesson the Tories must learn from last week's embarrassing election result, it's to listen to us voters more carefully - particularly on matters concerning the pound in our pockets.

MARKET REPORT: Printer St. Ives soars 33%

In January, some £61m was wiped off the firm after it warned investors that results for its full year would come in materially below expectations. It was hit by a number of project cancellations and weakness in its largest market, grocery retail. Coupled with a botched deal with Harper Collins in February, the firm's shares had fallen 91 per cent year-to-date on Tuesday.

The grizzled father-of-three, 45, was director of regulation at Barclays during some of the biggest scandals in the lender's history.

Charles Stanley is back in the black with an £8.8m profit for the year to March, up from a £300,000 loss. It now oversees £24bn of funds, and hiked its annual dividend by 20 per cent to 6p per share.

Josef El-Raghy sold around 10.4m shares in the Jersey-based company at an average of 1751p. Alongside his family, El-Raghy still owns 10.5m shares, equivalent to a 0.9 per cent stake.

Zara owner Inditex has notched up an 18 per cent surge in first quarter earnings after another double-digit hike in sales as it continued its worldwide expansion.

Bellway says residential property market 'robust'

Housebuilder Bellway reported in Wednesday's trading update that the residential property market remains "robust" as buyers ignored the uncertainty caused in the UK through the General Election. Bellway's Shares rose more than 3 per cent in morning trading to 2,951p. The Newcastle-based group said sales demand in the four months to June was strong, with a 13 per cent upsurge in reservation rates to 221 per week.

Fosun's offer of 40.85 pence per share was 15.1 per cent above Gemfields' closing price on Tuesday and eclipsed investment fund Pallinghurst's 37.1p bid last month.

Retailer WH Smith has reported a two per cent sales increase in the first quarter of this year due to the success of its shops in airports, train stations and motorway services.

Tips to avoid falling to financial fraud via social media

Internet users are being warned about giving away too much information on social media websites such as Facebook and Twitter as fraudsters increasingly comb them for details. By piecing together information on various social media websites, fraudsters can put it together like a jigsaw to apply for financial products and defraud people, according to Barclays which has launched a television advertising campaign to help battle the problem.

The hoax reads: 'You have an outstanding tax refund of 265.84 GBP for tax year 15/16. Please fill out the following form to process your refund.' Most web browsers had blocked the site last night,.

The fake DVLA email, which 'brazenly' includes a reference to reporting scam emails, includes a link to a 'secure web form' that's designed to collect personal information.

House price inflation at highest since October says ONS

Annual property price inflation has hit its highest level since last October according to latest data from the Office for National Statistics. Average house prices increased 5.6 per cent in the year to April 2017, up from 4.5 per cent recorded the previous month, to reach £220,100 - £3,500 more than March and £12,000 more than this time last year.

Income seekers will see their monthly payouts plummet by more than two-thirds if they sign up with the same big bank when their bonds mature.

Barclays has created a card reader that's much easier to use. The buttons are bigger to help those who struggle with dexterity or eyesight to tap in their PIN.

What will come next for shares following the election?

Say what you want about Theresa May, despite a disastrous election campaign markets have seemingly bought into her as a 'strong and stable' leader for Britain. But the unexpectedly weak result for the Tories is likely to introduce a degree of volatility into the stock market. What can investors do to protect themselves?

The EU is seeking the power to force some of London's euro clearing houses to move inside its borders after Brexit in 2019, it has emerged. We explain why this matters.

Britain's small businesses and army of self-employed workers, who have complained of being neglected may find themselves back in the driving seat thanks to the election

Are stockmarkets too expensive to invest? Investing Show

Major stock markets - including the FTSE 100 and US indices - have hit a series of new highs in recent times, so do they now look too expensive? Ben Kumar, of Seven Investment Management, joins the Investing Show to discuss how you judge whether a market is expensive or not and why this matters. And for those who would rather not pay up, the show also looks at where in the world looks better value at the moment.

Hitting the Bank of England's 2 per cent target on the nose in an age of flexible exchange rates and volatile energy prices is difficult.

Economists had been expecting consumer price inflation to hold steady at 2.7 per cent. But official data revealed today by the Office for National Statistics revealed the cost of living continues to rise.

Live by a beach in London at new Royal Victoria Dock flats

This corner of East London is getting a multi-billion pound makeover, with the sale of more than 100 homes just announced. Developers Mount Anvil are building the new homes on the land found on Western Gateway, in Royal Victoria Dock - which is just moments from the ExCel exhibition centre and across the River Thames from the O2.

Edinburgh University will spearhead the new UK project that's been introduced to inform cities about potential safety benefits of lowering speed limits in built-up areas.

Calling relatives who are on holiday abroad will be no cheaper despite a crackdown on mobile phone charges in Europe. In fact, talking to someone in Spain could cost as much as £1.50 per minute.

Your rights at work if you fall ill

When you are diagnosed with a serious illness, including cancer, there are a whole host of practical issues you unfortunately need to tackle alongside treatment for the disease. One of the most significant being your job. For some this means juggling work alongside your treatment while for many people the struggle is getting back after recovery.

Research by The Mail on Sunday has discovered that premiums often double, quadruple - or even multiply eightfold - for former employees who want to maintain cover with the same provider.

If you delay state pension and die your heirs can lose out

When my father reached retirement age at 65 he decided to defer his pension. Unfortunately at the age of 68 he passed away having not claimed anything. I am being told that I can only claim for three months of his pension and deferred income will not be paid to his estate. Is there anything we can do?

My new rented flat has a prepayment meter but it seems to be a lot more expensive than I'm used to - can I switch to a standard meter?

Checking that a credit file is accurate - and boosting a personal credit score - are vital keys to smoothing the path to borrowing.

The secret of Honda's hottest ever Civic Type hatchback

Honda's scintillating 169mph Civic Type R hot-hatch has finally been unleashed. Ray Massey was one of the first journalists behind the wheel. And, according to him: 'it sucks', quite literally. Find out why we think that technology that sticks it to the road means the Civic should retain a cult performance-car following.

Britons spent £3.6billion on car loans in March alone - up 13 per cent on last year. There are worries loans could lead to the next financial crisis if the market collapses based on used car prices.

Motoreasy said that many problems identified during a service would also be picked up in an MOT test and could save owners from paying for labour costs that average at £77 an hour.

Four tactics to keep your investment portfolio on track

Experts preach the importance of investing for the long term, picking your investment funds and shares and leaving your money where it is. But it is equally important to check in occasionally to see how your investments are progressing and whether any fine tuning is necessary. Here are four issues investors should consider in making their investment portfolios fit for purpose.

My flat is part of my pension, says TV star Gethin Jones

The former Blue Peter presenter and Strictly Come Dancing star has made hundreds of thousands of pounds from savvy investments. Jones, the son of teachers, used to answer phones for a living and envy the wealth of his successful friends. Now 39, he recently started dating 28-year-old underwear model Katja Zwara. He lives in a £1.2million flat in West London and can earn £12,000 an hour.

With the economy struggling, inflation rising, sterling weak and wage growth going nowhere, household budgets are going to come under extreme pressure in the months ahead.

The seeds of this Election result were sown in the financial crisis, which began a decade ago with the collapse of Northern Rock.

What does a hung parliament mean for buy-to-let?

Landlords across Britain are likely to be holding their heads in their hands after voters backed Labour in droves, leaving the country with a hung parliament. None of the major parties seem keen on private landlords and the best outcome for buy-to-let was considered to be a Tory majority, even though the Conservative government has already tightened the tax net.

Even if the Tories manage to form a Government with MPs from Northern Ireland's Democratic Unionist Party, it is likely the latter would demand a shelving of perceived attacks on pensions.

How funds have earned £5,500 more than savings

On March 5, 2009, the Bank of England cut interest rates from 5 per cent to 0.5 per cent - their lowest level since the central bank was founded in 1694. The move sent the FTSE spiralling down to around 3500, its lowest level in six years, which would later be seen as the darkest point of the global financial crisis for UK markets.

Confidence among Britain's big businesses has fallen sharply since last month, according to a survey by the Institute of Directors of 700 of its members.

The country has some of the world's most famous and successful companies such as Toyota, Sony and Nintendo, but the share prices have long been facing a headwind.

Ten of the best used cars you can buy for less than £1,000

Many of us don't even want to get into a finance deal for a new £10,000 model. And for the real price tag averse motorist, for £1,000 you can buy a solid car that's practical, reliable and a bit different. Naturally you have to choose the right one and check it out carefully, but it really can be done. Here are some of our favourites.

EDITOR'S SAVINGS DEALS OF THE WEEK
For current account rewards and interest rates conditions may apply eg. using provider's full switching service, min monthly deposits and direct debits. For savings, access maybe limited, min/max deposits may apply. Always check T&Cs.; *Not FCSC protected.

50 ways to save money....

To clear the average national household debt of ?13,000 at 6% interest with a monthly repayment of ?100 will take around 17 years. There are, however, plenty of simple ways to make significant savings on your regular spending that could clear your debt - or boost your savings - in less than a year. This is Money's top 50 - updated - money-saving tips may appear light-hearted but are deadly serious.

Pick the best (and cheapest) investment Isa platform

Choosing the right DIY platform is crucial but a wealth of choice and changes to charges have left many investors scratching their heads. We pick some of the best. We also highlight why investing in an Isa makes sense, as it should protect your hopefully growing investments from tax forever.

We asked trusted experts to recommend the best funds that cover different investment sectors - and included This is Money's selection of active and passive options too.

Rightly or wrongly, some people simply want a quick, straightforward route map to investing in an Isa. To that end, this is our distilled guide to getting started.

How much money do I need to save for my pension?

The amount you can save into a pension ultimately depends on what you can afford - but the longer you leave it the more you will need to save. We tend to put ambitious targets on our hoped-for income in retirement and then underestimate how much we will need to set aside to achieve that. So how much should you save?

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Making the most of a pension is your best chance of securing a decent income when you retire. We explain what you need to know.

Even at a time when we are stretching our finances further to afford a home, moving less, and pushing mortgages beyond 30 years, we still remain captivated by two-year fixed rate deals.

When will UK interest rates rise?

The break from rising inflation is only likely to be brief and economists forecast the cost of living to continue to rise through this year. The Bank is still not expected to raise rates due to Brexit uncertainty, however, if the economy continues to fire on all cylinders the mood could shift.

What next for mortgage rates?

Mortgage rates were tipped to start rising in 2017 but so far, there hasn't been any evidence to suggest rates are about to get more expensive. Experts say borrowers sitting on their lender's default rate could save money by remortgaging now.

Ten tips for buy-to-let

For many buy-to-let looks an attractive income investment in a time of low rates and stock market volatility. Climbing house prices, rising rents and improving mortgage deals are tempting investors - although they will need a big deposit. Read This is Money's top ten buy-to-let tips

Best paid jobs and biggest pay rises of 2016 revealed

Compare your pay to the national average and see whether your employer treated you to a pay rise in line with the the rest of your profession. Farmers, care and air travel assistants were big winners on the pay scales in 2016. Travel agents, careers advisers and probation officers lost out.

   

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