EU referendum: IMF says an acrimonious Brexit would spark recession and permanently knock UK economy June 18, 2016 The economy could be plunged into recession, unemployment would jump and wages tumble if the UK votes to leave the European Union, the International Monetary Fund (IMF) has warned today. In its latest assessment of the dangers of walking away from the EU, the IMF said the consequences would be “negative and substantial” while household incomes would [...]
IMF head Christine Lagarde says EU makes Britain richer, vibrant and more exciting June 17, 2016 Christine Lagarde has championed the UK's membership of the European Union, and called on Europe to counter the populist and insular mindset sweeping the continent. In a speech in Vienna this morning, the managing director of the International Monetary Fund (IMF) said there was a "clear case as to how the UK has benefited — and will continue [...]
Europe signs off on €7.5bn finance package for Greece June 17, 2016 European leaders have signed on the dotted line to unlock the latest tranche of Greece's bailout funds this morning. The beleaguered nation will get its hands on €7.5bn (£5.9bn) next week after technocrats from the European Stability Mechanism (ESM) – the body in charge of administering the Greek bailout, based in Luxembourg – approved the deal today. Finance [...]
US inflation still going strong as prices rise for third straight month June 16, 2016 Higher petrol prices and a weaker dollar helped US inflation stay hovering around the one per cent mark in May, official statistics out this afternoon confirmed. Prices rose by 0.2 per cent over the month in the world's largest economy, but the annual rate of inflation slipped back from 1.1 per cent to one per [...]
End of deflation in sight for Eurozone as it edges back to stagnant prices June 16, 2016 The Eurozone took a tiny step towards inflation in May, as official figures showed the single currency bloc tip-toeing back towards normality. Inflation is still in negative territory, with prices falling by 0.1 per cent over the last twelve months, according to figures released by Eurostat, but this was a very slight improvement on the minus 0.2 per [...]
Bank of England in last-ditch Brexit warning as it holds interest rates June 16, 2016 Brexit is not only the most serious threat to the UK economy, but it is potentially the biggest risk to global financial stability, the Bank of England said today in another warning ahead of next week’s In/Out vote. Amid signs referendum nerves have shaken markets to their core, the Bank said volatility looks set only [...]
Mark Carney and Vote Leave trade blows over Bank of England’s referendum interventions June 16, 2016 Mark Carney has clashed with a top Brexit campaigner over the Bank of England's role in the referendum campaign in a tense exchange of letters, revealed this morning. Bernard Jenkin, a director at the official campaign group Vote Leave, wrote to the governor of the Bank of England earlier this week raising concerns he would make [...]
Gold hits highest level in nearly two years after US Federal Reserve’s dovish coos June 16, 2016 The US Federal Reserve's dovish coos helped gold smash through the $1,300 mark for the first time since early May today. Spot gold swelled 1.30 per cent to $1,308.1 per ounce this morning, having touched its highest level since August 2014 at $1,313.60 earlier. US gold added 1.80 per cent to $1,311.3, after hitting its highest rate [...]
EU referendum: Conservative chancellors and leaders attack Bank of England and George Osborne for dishonesty June 16, 2016 Four Conservative grandees, including two former chancellors and a pair of ex-leaders, have accused the Bank of England of "peddling phoney forecasts and scare stories", as they lashed out at George Osborne's plans for an emergency Brexit budget. Writing in The Telegraph this morning, the group – chancellors Norman Lamont and Nigel Lawson, and former leaders Iain Duncan-Smith and [...]
City A.M. Shadow MPC votes 9-0 to hold rates before EU vote June 16, 2016 The Bank of England has no option but to keep interest rates on hold until after the EU referendum, leading city economists and experts have said. The Bank’s rate-setting monetary policy committee (MPC) meets today, just one week before the 23 June vote, with all eyes on governor Mark Carney who warned last month that a [...]