Unemployment is falling faster than Bank of England predicted
sell explained. “We’ll review the two businesses in the new year and look to bring them together under one brand.
“There will be some back office job losses in both Glasgow and Milnathort but I think that we will also be creating jobs in Milnathort to handle the increase in business.”
Russell said this is the fourth time he has tried to buy Forth Wines during his 38 years with Inverarity Morton.
“The first time was about 20 years ago when Nick Harvey-Miller was Forth Wines managing director,” Russell said. “We then tried again when the business was sold to Matthew Clark – we were the highest bidder and the preferred bidder because we’re Scottish but Noble Grossart, the bank that was selling the business, chose Matthew Clark because it had already done due diligence.
“We approached Forth Wines about 15 months ago but we’re told the business wasn’t for sale, but then six months ago we heard that it was.”
Bulloch is currently looking for a buyer for his Loch Lomond malt and grain distillery, although Russell remained tight-lipped over his progress.
Cumming added that Forth Wines FRESH speculation that interest rates will be hiked earlier than forecast was prompted yesterday by the Bank of England acknowledging unemployment has fallen faster than expected.
New governor Mark Carney committed in August to freeze rates at historic lows of 0.5 per cent until unemployment came down from a then-figure of 7.8 per cent to 7 per cent – saying it would probably take three years.
Since then it has emerged that UK economic growth has been strong and the jobless total has already fallen to 7.7 per cent.
The rise in employment has led many City economists to forecast the Bank would amend its forecasts and eventually raise rates earlier.
“The fall in unemployment in the three months to July appeared to reflect growth in full-time permanent jobs,” the minutes of the Bank of England the economy was disappearing more quickly than thought in August suggested the central bank might bring forward its estimate for when unemployment falls to 7 per cent.
“Whether it will be in November is perhaps premature to say but, over the course of the next few months, I will certainly be looking for indications that they might need to bring it forward,” Dixon said.
Capital Economics, a consultancy, said a change in guidance for falling unemployment as soon as the November MPC meeting was probable.
But it said interest rates still looked set to stay at low for some time given the scope for productivity improvements in the UK economy.
Even in August most privatesector economists already forecast the jobless rate would fall much faster than the Bank predicted, and for rates to rise much sooner than late 2016. would strengthen the company’s reach south of the Border – currently Forth Wines sells about £6m-worth in England compared with Inverarity Morton’s £1m.
Kerry Sharp, head of Scottish Enterprise’s Scottish Investment Bank, said: “By investing in Forth Wines, we worked alongside private sector investors to create economic benefits. The sale consolidates these benefits in a very challenging market.” l BrewDog yesterday said it would expand its senior management team as it unveiled a £5m expansion of its brewery in Ellon, which opened in January.