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Economics

  • British car manufacturing rose by 9.3 per cent last month – SMMT

    December 17, 2015

    Britain’s car manufacturing industry delivered a strong performance in November as output rose. Manufacturing rose 9.3 per cent in November, industry body the Society of Motor Manufacturers and Traders (SMMT) re­p­orts today, revealing that 150,084 vehicles were built during the month, up from 137,347 this time last year. Mike Hawes, SMMT chief executive, said: “November’s [...]

  • US markets welcome Fed rate rise as analysts applaud smooth landing for Janet Yellen’s announcement

    December 17, 2015

    The US central bank finally hiked interest rates for the first time since 2006 last night in a highly-anticipated move marking “the end of an extraordinary period.” US stock markets welcomed the move, with the S&P 500 jumping 1.45 per cent as the Federal Reserve lifted its main policy rate 0.25 percentage points from record [...]

  • The Help to Buy mortgage guarantee scheme is boosting high loan-to-value lending

    December 17, 2015

    The government's Help to Buy mortgage guarantee scheme, which offers greater protection for lenders, is boosting high loan-to-value (LTV) lending, according to new figures released today. The number of mortgage deals offering loans equal to 95 per cent of the value of a property climbed to 260 in November, the data from mortgage insurer Genworth [...]

  • London house prices to reach £931,000 by 2025, more than double the UK average

    December 17, 2015

    Just when you thought the housing market couldn’t get hotter: the average London house price is set to reach £931,000 by 2025. UK house prices are set to rise by 50 per cent, while rents will increase by more than 25 per cent by 2025, according to the Association of Residential Letting Agents (ARLA) and National [...]

  • Fed rate hike reactions: How analysts responded to Janet Yellen’s interest rate rise

    December 16, 2015

    The Federal Reserve’s move to raise its short-term interest rate from its historically low near-zero levels was widely expected by economists, but not everyone welcomed the first hike in close to a decade. Attacking the Fed’s move as “premature”, CEBR economists were critical of the central bank’s move to “fight non-existent inflation”: “The Fed is [...]

  • Federal Reserve interest rate decision: What did the world look like in 2006, the last time the Fed hiked rates?

    December 16, 2015

    We finally have lift-off. The Federal Reserve have raised short-term interest rates for the first time in close to a decade, signalling the US economy has returned to health after the financial crisis.  But what did the world look like in June 2006, the last time a Fed rate hike happened? If you don’t remember, [...]

  • Oil price stable following Fed interest rate hike

    December 16, 2015

    The price of oil was stable following the expected US Federal Reserve decision to raise interest rates by 0.25 percentage points. Fed chair Janet Yellen said: “I have been surprised by the further downward movement in oil prices. Oil prices need to stabilise for inflation to move up.” The oil price has been falling since Saudi [...]

  • US Federal Reserve hikes interest rates for first time in nine years but stresses future hikes will be gradual

    December 16, 2015

    The US central bank has raised interest rates for the first time since 2006. The Federal Reserve lifted its main policy rates 0.25 percentage points, its first hike in nine years and its first interest rate change since 2008. The target range for the federal funds rate is now 0.25 to 0.5 per cent. The dot plots, which show [...]

  • Fed rate hike reactions: The best Twitter responses to Janet Yellen’s big move

    December 16, 2015

    What to do when the Federal Reserve has raised interest rates from a historic low for the first time in nearly a decade, in a bill of health for the US economy? Why, take to Twitter, of course. Read more: What the world looked like the last time the Fed hiked rates The social media [...]

  • Here’s how the Federal Reserve’s interest rate hike could impact the world economy

    December 16, 2015

    As the Federal Reserve raised interest rates today, here's how economists think the US policy tightening will impact the world economy: Latin America Central Banks in Latin America are likely to begin hiking rates in response, according to Ian Shepherdson at Pantheon Macroeconomics. The Brazilian real has fallen 32 per cent against the US dollar this year, [...]

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