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Investment News Base Interest Rate Reassures Investors 18470234

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Base interest rate reassures investors
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Base interest rate reassures investors

11 December 2009 / by Rebecca Sargent

The Bank of England’s decision to hold the Base rate at 0.5 per cent for the tenth consecutive month has boosted investor confidence, The Share Centre has claimed.

Commenting, Joshua Raymond, market strategist at City Index said: “European markets gained on Thursday after three days of weaknesses with investors gaining in confidence after the Bank of England decided to keep interest rates on hold and maintain quantitative easing levels.”

According to Mr Raymond, UK banks led the way for bargain hunting investors: “The banks have led today’s gains with RBS and Lloyds both firmly in demand,” he said.

Adding: “The UK banking sector has bounced from support levels and with RBS shares off 48 per cent and Lloyds shares off 28 per cent from their August highs, the bargain hunters are being encouraged to pick up both stocks from their lows.”

Meanwhile, the Base rate decision caused no surprises amongst economists, Ian McCafferty, chief economic advisor at the CBI said: “It’s not a surprise that the Bank has taken no new action, as the latest round of quantitative easing announced last month is due to continue until February.

“Economic growth will be anaemic at best across 2010, so the Bank will have to continue looking to monetary policy levers for some time yet, and interest rates are likely to remain low for some time.”

© Fair Investment Company Ltd



  Product Name ISA Option Income Yield More Info
Investec FTSE 100 Income Deposit Plan yes

3.50%

per annum

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6 year capital protected deposit plan paying a potential income of 3.50% annually or 0.28% monthly. Also available for Cash ISA and Cash ISA transfer.
Income Maximiser yes
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Seeks to achieve a target yield of 7% to generate a quarterly income, whilst offering the potential for some long-term capital growth. Save 100% on Initial Charges.
Monthly Income Plus Fund yes
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Popular monthly income fund that aims to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and Government bonds, together with UK equities. 100% discount on initial charges.
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Strategic Bond yes
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Investing in higher yielding assets which will include most types of fixed interest securities, this fund aims to deliver a quarterly income to investors. Save up to 97% on Initial Charges.
Invesco Perpetual Corporate Bond Fund yes
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This highly popular investment fund aims to achieve a high level of overall return with relative security to capital. Income Paid to you twice yearly. Up to a 100% Discount off the Standard Initial Fund Charge.
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Artemis Income Fund yes
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One of the leading UK Equity Income Funds. The Fund managers hunt out companies with strong free cash flow and solid balance sheets. Income is paid to you twice yearly. 100% Discount off the Standard Initial Fund Charge.
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Invesco Perpetual High Income Fund yes
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One of the UK’s most popular income funds, the Invesco Perpetual High Income has delivered consistently good long term returns through a variety of market conditions. Income is paid to you twice yearly. Up to a 100% Discount off the Standard Initial Fund Charge.
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M&G; Corporate Bond Fund yes
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The M&G; Corporate Bond Fund is a conservative ‘blue chip’ sterling fund that aims to produce a higher return than UK government bonds. Income is Paid to you Quarterly. 100% Discount off the Standard Initial Fund Charge.
Jupiter Merlin Income Portfolio yes
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The Jupiter Merlin Income Portfolio fund aims to achieve a high and rising income with some potential for capital growth. Income Distributions are made to you quarterly. 95% Discount off the Standard Initial Charge.
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