FINANCE
Hear it from the experts …
Your finances in 2017 by Dick Jenkins , Chief Executive of Bath Building Society
There is of course a whole raft of economic uncertainty linked to Brexit , the new US presidency and the changing political landscape in Europe that may end up dominating the world of personal finances , but there are some stakes in the ground we can plan around .
Dick Jenkins , Chief Executive of Bath Building Society
Most commentators think that the economy is still going to grow in 2017 , but at a slower pace than in the last couple of years so there might need to be a little belt tightening at both the personal and national level . Certainly that is the message for the Chancellor ’ s first Autumn Statement which will hardly go down in history as a “ giveaway budget .” The price of goods is likely to rise with the value of the pound falling following the Brexit vote . It is quite likely that wages growth ; such as there is , will only just about keep pace with inflation , so we won ’ t generally feel better off .
House prices are tipped to flatten after a few years of steady rather than heady growth again making those who own property feel no better off . The economics of Buy to Let have been systematically attacked by both the
Government and the Bank of England , so we might expect this segment to slow , but in a continuing ultra-low interest rate environment many will ask if there is anything better than property to invest in . Although the Government has confirmed the new ISA limit at £ 20,000 and put out a good Bond ; at 2.2 %, nobody is going to get rich on that given the upper limit on that scheme at £ 3000 .
It will probably be another great year for borrowers with record low interest rates , and yet another bad year for savers who will once again feel punished for their prudence .
Those who like reading the tea leaves on the economy could do worse than keeping one eye on the stock market and another eye on of the value of the pound both of which might see further volatility as the Brexit saga unfolds . You ’ ll need your third eye on the US , as that ’ s where we think the trendsetting on interest rates will be coming from !
4855-Businessexchange _ Halfpagelandscape _ 210x122 _ OUT . indd 3 05 / 10 / 2016 17:16
4855-Businessexchange _ Halfpagelandscape _ 210x122 _ OUT . indd 3 05 / 10 / 2016 17:16
8 THE BUSINESS EXCHANGE 2016