• Interest rates may fall

• Equities market may rebound towards end of year

19 December 2007

UK interest rates may drop by three quarters of a percent in 2008, according to Brewin Dolphin, the UK’s largest independent provider of private client investment management and financial planning services.

The company, which has 39 offices around the UK and Channel Islands, believes that threats to the economy could lead the Bank of England to cut rates as many as three times, in a move that would be welcomed by homeowners and businesses.

Brewin Dolphin argues that while no-one can completely predict the state of the economy throughout the year ahead, there are more worrying indicators than eassuring ones – a situation that is likely to lead to interest rate cuts. Given the current climate, Brewin Dolphin predict that rates could come down to 4.75 percent by the end of the 2008.

When it comes to the equity market, Brewin Dolphin is cautious but optimistic about the outlook for next year.

Mike Lenhoff, Chief Strategist at Brewin Dolphin said: “I view this period of consolidation, following four years of a bull market, as the transition phase to the next stage of the bull market. I expect the S&P 500 to reach all-time highs and to end 2008 somewhere around 1650. If Wall Street goes my way later next year, then I think the FTSE 100, whose large international blue chips have more to do with the prospects for the global economy than the UK, could be up around 7200 by year-end 2008.”

- Ends -

Notes to editors

Written on 18 Dec 2007, at which time S&P 500 was at 1454 and FTSE 100 was at 6278

Brewin Dolphin Limited (“BD”) is the principal operating company of Brewin Dolphin Holdings PLC which is listed on the London Stock Exchange. BD is authorised and regulated by the Financial Services Authority and is a member of the London Stock Exchange.

BD is the largest independent private client investment manager in the UK. The Group manages £21.6 billion of funds for over 120,000 clients, and of this £10.7 billion is on a discretionary basis. BD has 39 offices and is corporate adviser to 131 corporate and 100 institutional clients. Brewin Dolphin Investment Banking was voted AIM Broker of the Year 2007. [1]

The Group provides complete investment management for private investors, charities and pension funds and trades as:

Brewin Dolphin in England, Wales and the Channel Islands
Bell Lawrie in Scotland and Northern Ireland
Hill Osborne in the East Midlands
Wise Speke in the North of England
Stocktrade is the BD Execution-Only division. www.stocktrade.co.uk

Please see Media Centre section on www.brewindolphin.co.uk for details and photos of all commentators and analysts throughout the BD Group.