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The powers that be in America, led by Federal Reserve Board Chairman Ben Bernanke, have been putting the foot down on the interest rate brake lately in order to prevent the world’s largest economy from sliding into recession. Last week the American Fed dropped borrowing costs by three-quarters of a percent as the world’s stock markets showed signs of trouble.

But will same happen in the UK?

The problems facing the Fed and the Bank of England are complex and difficult, but still decidedly different. In the UK, the Bank of England has to balance the interests of the broader economy with its main remit, which is addressing and fighting inflation.

The threat of rising prices may explain why Mervyn King and his colleagues on the Monetary Policy Committee have been far more cautious than the Americans. Having said that though, the pressure is certainly on for a cut in interest rates, and King himself in a recent speech grudgingly admitted rates will almost certainly eventually have to come down.

So what about the immediate future?…

Well, in two words…rather uncertain. The Fed could chop another half a point off the headline rate of interest later today in order to respark the lagging housing market and encourage increased consumer spending.

Some economic observers hold the opinion that the recent series of deep cuts might not have been necessary if the Fed had held back rather than upping the rates for 17 consecutive months from the start of 2005.  What the Bank of England will do for the rest of the year is, at the moment, anyone’s guess, but a February cut is almost certainly expected.

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No, it’s not a new investment company but rather a suggestion. My partner wears a well known brand of watch that cost his parents quite a packet when they gave it to him for his 21st birthday some years back. It was expensive then but these days we have noticed just how much the value has appreciated. It’s going to be an heirloom for one of our children someday…some security if you like.

Many people do not realise that purchasing a good quality piece of jewellery can actually make a good investment, in my partner’s case, it is a watch and one that appears to have just as good a resale value as a new one. Why not consider investing in something similar…? choose a top brand of course, Chopard are a brand of timepiece that have been around since 1860 and would make an excellent gift for a child - albeit a teen maybe - as well as something for their future.

Popularity: 16% [?]