Bank of England Keeps Rates At 5.25%

In a widely anticipated move, the Bank of England (BoE) has decided to keep interest rates unchanged at 5.25%. One vote for a cut and eight for unchanged. This decision comes despite recent fluctuations in inflation and the ongoing economic recovery in the UK.

Context of the Decision

The BoE's decision to maintain the current interest rate level comes in the wake of falling inflation. Inflation fell to 3.4% in February, down from 4% in January, marking the lowest rate since September 2021. Despite this decrease, the inflation rate remains above the BoE's target of 2%.

The decision also comes at a time when the UK economy is showing signs of recovery. The FTSE 100, a share index of the 100 companies listed on the London Stock Exchange with the highest market capitalization, has hit a 10-month high.

Implications of the Decision

The decision to hold interest rates steady has several implications. For borrowers, it means that the cost of borrowing will remain relatively high, potentially slowing down consumer spending and investment⁵. For savers, it means that they will continue to earn interest at the current rate.

The decision also signals the BoE's cautious approach towards managing inflation and supporting economic recovery. By keeping interest rates steady, the BoE is aiming to strike a balance between curbing inflation and fostering economic growth.

Looking Ahead

Looking ahead, the BoE's focus is not just on bringing inflation back to target but keeping it there in the longer term. Analysts predict that the BoE may start cutting rates from August this year. However, the exact timing will depend on a range of factors, including the trajectory of inflation and the pace of economic recovery.

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Inflation Falls To 3.4%

According to the Office for National Statistics (ONS), the UK's inflation rate has fallen to 3.4% vs 3.5% expected. This is the lowest annual rate of price rises in more than two years. The Consumer Prices Index including owner occupiers' housing costs (CPIH) rose by 4.2% in the 12 months to January 2024.

What's Driving the Change?

The slower pace of food price rises helped push down inflation, along with soft drinks, restaurants, and hotels. However, this effect was partially offset by petrol prices and rental costs.

The Impact on Interest Rates

These latest inflation figures are particularly significant as they come just before the Bank of England's interest rate announcement. The Bank of England, which has a target rate of inflation of 2%, uses the latest figure when weighing up whether to raise or lower interest rates⁵.

The Political Response

The drop in inflation has sparked responses from both sides of the political spectrum. Chancellor Jeremy Hunt has stated that the figures show the government's plan is working. On the other hand, Labour's Rachel Reeves has called for an election, stating that the country cannot afford another five years of a Conservative government.

Looking Ahead

While the drop in inflation is certainly good news, it's important to remember that this doesn't mean the cost of living is falling. Instead, it means that prices are rising less quickly than they were before. As such, the impact on households will vary depending on their specific circumstances.

In conclusion, while the latest inflation figures provide some cause for optimism, they also highlight the ongoing challenges facing the UK economy. It will be interesting to see how these figures influence policy decisions in the coming months.

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HP After Sales Service

 

I am in the process of communicating with the HP returns department about a faulty printer that I bought from them less than 3 weeks ago.

They have told me to print off the returns label.

How do I do that, given that my printer doesn't work?

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The Budget - Key Points

 

Here are the key points from Jeremy Hunt's budget:

1. Tax Cuts: The Chancellor announced a 2p cut to the rate of National Insurance paid by employees.
 

2. Long-term Growth: The budget was set against the backdrop of the UK’s struggling economy, which slipped into a technical recession at the end of 2023.
 

3. Pensions and Wages: The cap on the amount workers can accumulate in pension savings over their lifetime before having to pay extra tax (currently £1.07m) is to be abolished. The tax-free yearly allowance for pension pot will rise from £40,000 to £60,000.
 

4. Fuel and Alcohol: Fuel duty is frozen, and the 5p cut to fuel duty on petrol and diesel, due to end in April, is kept for another year. Alcohol taxes will rise in line with inflation from August, with new reliefs for beer, cider, and wine sold in pubs.
 

5. Energy Bills and Nuclear Power: Government subsidies limiting typical household energy bills to £2,500 a year are extended for three months, until the end of June. There is a commitment to invest £20bn over the next two decades on low-carbon energy projects, with a focus on carbon capture and storage.
 

6. Childcare and Universal Credit: 30 hours of free childcare for working parents in England is expanded to cover one and two-year-olds, to be rolled out in stages from April 2024. Families on universal credit will receive childcare support up front instead of in arrears, with the £646-a-month per child cap raised to £951.
 

7. Back to Work Plans: There are new plans for fitness-to-work testing regime to qualify for health-related benefits, a new voluntary employment scheme for disabled people in England and Wales called Universal Support, and tougher requirements to look for work and increased job support for lead child carers on universal credit.

8. Government Debt, Inflation, and Economic Growth: The Office for Budget Responsibility predicts the UK will avoid recession in 2023, but the economy will shrink by 0.2%. Growth of 1.8% is predicted for next year, with 2.5% in 2025 and 2.1% in 2026.


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Virgin Media Gouging Its Customers Dry!

 

The hapless customers of Virgin Media have been receiving letters and emails advising them of the forthcoming April price gouge.

Prices will go up by an eye-watering 8.8%  being: February's 4.9% RPI plus an additional (unwarranted) 3.9%.

They saw you coming!

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Net Zero Boosts China's Economy

'Ineos owner Jim Ratcliffe warned last week that Europe will lose almost all of its remaining chemicals industry over the next 20 years,... One of the reasons, Ratcliffe said, was that in Britain his company is paying five times as much for its gas and four times as much for…

— Catherine McBride (@CeeMacBee) March 4, 2024

 

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For Good or Ill, This Will Be Rishi's Budget!

Treasury Flickr photos revealing about who’s writing the budget… pic.twitter.com/klkCj867dI

— Alex Wickham (@alexwickham) March 4, 2024

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The Double Life of Jan Marsalek: Wirecard COO and GRU Agent

Jan Marsalek, the former Chief Operating Officer (COO) of the German payment processing firm Wirecard, has been making headlines for all the wrong reasons. Not only was he at the helm of one of the biggest corporate scandals in recent history, but recent reports suggest that he was also a Russian agent for nearly a decade.

A High-Flying Executive

Marsalek spent 10 years as the COO of Wirecard, from 2010 to 2020. In his role, he oversaw transactions worth up to $140 billion a year, on behalf of thousands of companies¹. For a time, he lived in a mansion in Munich he rented for $38,000 a month, and crisscrossed the world on private jets¹.

The Downfall of Wirecard

Wirecard imploded after a series of investigations by the Financial Times exposed massive accounting fraud in its Asian operations, which Marsalek was in charge of. The company admitted that nearly €2 billion in cash it supposedly held did not exist. Wirecard filed for insolvency in June 2020, with close to a $2-billion-hole in its balance sheet¹. Marsalek is accused of stealing hundreds of millions of dollars¹.

The Fugitive Life

Marsalek fled Germany after being fired from Wirecard in June 2020. He is reportedly fugitive in Russia after Interpol issued a Red Notice for his arrest due to his alleged role in the Wirecard scandal.

The GRU Connection

Western intelligence and security official sources told The Wall Street Journal that Marsalek used his position as Wirecard's COO to illegally fund Russian spy agencies' covert operations around the world, as well as provide assistance to the Russian mercenary group Wagner. This involved helping to pay Russian intelligence officers and informants and funneling money into conflict zones in the Middle East and Africa¹. Marsalek also likely collected data on Wirecard clients in Munich, including Germany's Federal Criminal Office — the country's equivalent of the FBI — and sent it to Russia.

Conclusion

The story of Jan Marsalek is a stark reminder of the potential for corporate malfeasance and international espionage to intertwine. As investigations continue, the full extent of Marsalek's double life is yet to be revealed..

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• Appeal to the First-tier Tribunal or Upper Tribunal
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