It's not surprising that interest rates might finally be on their way up

Carney's warning not all that shocking.

New UK bank governor Mark Carney warned yesterday that interest rates could finally be on their way up after over four years at 0.5 per cent.

The move would not be surprising for a number of reasons:

  • Savers, particularly the elderly, are coming under increasing pressure due the low rates over the past four years.
  • UK house prices have begun to recover. According to figures from the Land Registry, house prices in England & Wales rose by 0.9 per cent in 2012 and by 0.1 per cent in the first four months of 2013. Although this growth is moderate, it does show that the market is stabilizing.
  • The British Pound has deprecated by 5 per cent against the US dollar so far this year. This has impacted on inflation which rose from 2.4 per cent in April 2013 to 2.7 per cent in May 2013.
  • The UK stock market (FTSE 100) is up by 7.6 per cent so far this year in GBP terms and by 3.7 per cent in US dollar terms (as at 19 July 2013).

Increasing rates will a number of effects. It will:

  • Encourage more investment in the UK bond market which will help support the Pound.
  • Reduce consumer spending which will put downward pressure on inflation.
  • Cause people to pull money out of the stock market and move it into cash.
  • Put pressure on the housing market, particularly at the lower end.

The last point is the one that will weigh on the mind of Mark Carney the most. This is mainly due to the fact that over 60 per cent of UK individual wealth is tied up in the property market (according to the ONS). This is one of the highest proportions in the world and explains why the UK’s fate is so heavily linked to property. In contrast, German’s have less than 20 per cent of their individual wealth in property which shows why they are less susceptible to changes in its value.

In GBP terms, UK residential prices have declined by 12 per cent since their peak at the end of 2007 (Source: Land Registry). In US dollar terms the decline has been even more alarming at 34 per cent. This means that the average UK individual has lost over 20 per cent of their US wealth over the past five years due to the decline in property prices.

Bank of England Governor, Mark Carney. Photograph: Getty Images

Andrew Amoils is a writer for WealthInsight

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#Match4Lara: Lara has found her match, but the search for mixed-race donors isn't over

A UK blood cancer charity has seen an "unprecedented spike" in donors from mixed race and ethnic minority backgrounds since the campaign started. 

Lara Casalotti, the 24-year-old known round the world for her family's race to find her a stem cell donor, has found her match. As long as all goes ahead as planned, she will undergo a transplant in March.

Casalotti was diagnosed with acute myeloid leukaemia in December, and doctors predicted that she would need a stem cell transplant by April. As I wrote a few weeks ago, her Thai-Italian heritage was a stumbling block, both thanks to biology (successful donors tend to fit your racial profile), and the fact that mixed-race people only make up around 3 per cent of international stem cell registries. The number of non-mixed minorities is also relatively low. 

That's why Casalotti's family launched a high profile campaign in the US, Thailand, Italy and the US to encourage more people - especially those from mixed or minority backgrounds - to register. It worked: the family estimates that upwards of 20,000 people have signed up through the campaign in less than a month.

Anthony Nolan, the blood cancer charity, also reported an "unprecedented spike" of donors from black, Asian, ethcnic minority or mixed race backgrounds. At certain points in the campaign over half of those signing up were from these groups, the highest proportion ever seen by the charity. 

Interestingly, it's not particularly likely that the campaign found Casalotti her match. Patient confidentiality regulations protect the nationality and identity of the donor, but Emily Rosselli from Anthony Nolan tells me that most patients don't find their donors through individual campaigns: 

 It’s usually unlikely that an individual finds their own match through their own campaign purely because there are tens of thousands of tissue types out there and hundreds of people around the world joining donor registers every day (which currently stand at 26 million).

Though we can't know for sure, it's more likely that Casalotti's campaign will help scores of people from these backgrounds in future, as it has (and may continue to) increased donations from much-needed groups. To that end, the Match4Lara campaign is continuing: the family has said that drives and events over the next few weeks will go ahead. 

You can sign up to the registry in your country via the Match4Lara website here.

Barbara Speed is a technology and digital culture writer at the New Statesman and a staff writer at CityMetric.