Pressure from the Government on the Banks is finally starting to pay off. The main mortgage lenders have started to respond to the demand that they should cut their mortgage lending rates. The Nationwide, HBOS, Royal Bank of Scotland, Natwest and the Northern Rock will cut their main variable lending rates by the full 1.5% on 1 December. (more…)

After recent price increases by Centrica and other gas suppliers, it is now the turn of the water companies to announce future price rises. They have approached Ofwat, the water industry regulator, with details of how much they want to increase prices from 2010. (more…)

Asda and Morrisons have started the first round of petrol price cuts, reducing the price per litre by 3p and 4p respectively. Tesco and Sainsburys are sure to follow, with BP also looking to cut prices. (more…)

Centrica managing director Jake Ulrich has warned that gas prices are likely to continue rising for some time. What he meant by this understatement was that energy bills could increase by over 60% during the next few years. This would mean the average household utility bill would increase from £600 per annum to close on £1,000 per annum.

Mr Ulrich went on to say “I do think we will see people change their behaviour, I think people will use less energy and I hate to go back to the Jimmy Carter days in the US, but maybe it’s two jumpers instead of one.” (more…)

Sir Win Bischoff, Chairman of Citigroup, expects house prices to fall for the next two years before they begin to stabilise. He believes the impact of the credit crunch and turbulence in the financial markets will continue throughout 2009. And as Sir Bischoff is the head of one of the biggest banks in the world, he is someone we should listen to. (more…)