Inflation stays at 1.2%, a five year low
Supermarket wars and low petrol prices have helped to keep inflation at a five year low, at just 1.2%.
Coupled with the dour global economic outlook, the news could push any interest rate rise until 2016. Although initially expected to rise this year, forecasters don’t expect to see any change soon.
Japan falls back into recession
The world’s third largest economy, Japan, faces challenges after it fell back into recession.
The Japanese Prime Minister, Shinzō Abe, will hold a general election to renew his term. It is expected he will win and will introduce new packages to breath new life into the Japanese economy, which is good news for the global economy and also for Britain, as the Japanese are big investors in the UK.
“Mansion Tax” stirring trouble
Questions over the mansion tax are being asked ever more loudly. The £2m threshold won’t only target the wealthy in London anymore, as house prices rise ever more steeply, ever more frequently. This means the tax may not be appropriate.
The tax may make all the difference for house sales - if a property is around the £2million mark, it’s expected there will be pressure from buyers for owners to drop the price below the threshold.