Few City people will have raised eyebrows at the decision to keep interest rates flat at 5 per cent yesterday. In fact, it’s an announcement from Chancellor Alistair Darling yesterday that’s piqued the Square Mile’s curiosity. Mervyn King, the governor of the Bank of England, otherwise known as Uncle Merv, must be feeling a mite hard done by at news the government is to install a city panel to watch over him and ensure another Northern Rock fiasco isn’t waiting in the wings. Reports say that while Merv isn’t too chuffed with Mr Darling’s plan - one City insider describes it as “a complete outrage” - the pay off is that the Chancellor is expected to back Merv’s favourite contender for deputy governor – Charles Bean.

Meanwhile the oil price hike overnight has boosted oil stocks and thankfully helped push the FTSE 100 back over the all important 6,000 mark after it lost headway this week. And there are fears that more rights issues could be in the offing, and possibly from the ailing house building sector. Something investors won’t welcome with open arms!

Cityblogger wishes you a good weekend.

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