Analysts believe growth figures of 0.4% mean no interest rate rise until well into 2016 1.23pm GMT GREECE HAS RECEIVED €1BN FROM THE EU BAILOUT FUND, THE EUROPEAN STABILITY MECHANISM AFTER COMPLETING A SECOND SET OF REFORM MILESTONES. The money will be used for debt service, budget financing and co-financing projects funded by EU structural funds. The ESM has also handed over €5.4bn for bank recapitalistation. In A STATEMENT the ESM said: ESM Managing Director Klaus Regling said: “With the disbursement of €1 billion, the ESM is supporting the Greek government in its reform process. The reforms cover a wide array of policy fields that are important to modernise the Greek economy. Notable examples include measures to stimulate competition in the energy sector, which should bring down prices, as well as a new law to help banks manage their exposure to non-performing assets, which will free liquidity and boost economic activity. Mr Regling added: “I hope the good cooperation with our Greek partners will continue, so that the first review of the ESM programme can be completed in early 2016. Only a successful conclusion of this review can lead to discussions on further debt relief for Greece, as the Eurogroup has said before.” 1.20pm GMT DESPITE THE WEAK GDP FIGURES, A RATE RISE FROM THE BANK OF ENGLAND IS STILL EXPECTED NEXT YEAR, EVEN IF NOT IN THE IMMEDIATE FUTURE. Calum Bennie, savings expert at Scottish Friendly said: Growth may be fragile but it is continuing and so attention will turn to an interest rate rise at some point in 2016. This is yet another sign that the party could be over for cheap borrowing. The guests may still be in the room but the music has stopped and with interest rate rises on the horizon borrowers have to prepare now for the very real possibility of larger debt repayments in 2016. People need to turn their attention to putting money aside to reduce any risks to their financial future as there is a degree of uncertainty ahead. Continue reading...
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