Bank of England minutes: Policymakers vote 9-0 to keep rates on hold May 20, 2015 Minutes from the Bank of England's May meeting have shown little change, with the monetary policy committee again voting 9-0 to keep interest rates at 0.5 per cent. Two members felt the decision was "finely balanced", implying they're thinking about reversing their vote. All members agreed interest rates "were more likely than not" to rise over the [...]
Enjoy it while you can! Analysts say deflation will not be here to stay May 19, 2015 Deflation has finally arrived in the UK for the first time since the 1960s, but economists are almost unanimous in saying it will be temporary. Inflation – as measured by the year-on-year change in the consumer price index (CPI) – was minus 0.1 per cent in April. The last time inflation was this low, [...]
London house prices soaring above the rest of the UK with average cost now £498,000 May 19, 2015 House prices in the capital continue to outpace prices in the rest of the UK, according to the latest figures from the Office for National Statistics (ONS). London house prices were up 11.2 per cent in the year to March 2015, compared to a nationwide average of 9.6 per cent, according to the ONS house price [...]
Eurozone prices bounce back as deflation ends May 19, 2015 The Eurozone has escaped deflation, officials figures yesterday confirmed. Annual inflation in the Eurozone was zero per cent in April, according to Eurostat, the EU’s statistical office. It means that prices of goods and services typically consumed by households were the same price in April as a year earlier. The data, which is in line with [...]
Euro tumbles as policy makers bring forward bond purchases May 19, 2015 The European Central Bank (ECB) will buy extra bonds during May and June to make up for the amount it believes it will be unable to purchase in July and August, an ECB official said yesterday. Analysts have noted that July and August can be quiet months for the bond market, and it may be difficult [...]
Euro falls below 1.2 against the dollar as ECB hints it will ramp up QE May 19, 2015 The euro fell back below $1.12 today, after a European Central Bank (ECB) policymaker hinted that the Bank is preparing to ramp up its bond-buying programme before the summer. By mid-afternoon in New York, the currency had fallen 1.42 per cent to $1.1154 – the first time it has dropped below the $1.12 mark since [...]
UK house prices: Scotland’s growth at its highest since 2007 as prices accelerate May 19, 2015 The UK’s house price growth rose to 9.6 per cent for the year to March, with Scotland the east of England and London driving the rise. The figures The 9.6 per cent rise in the UK for the year to March was 1.2 percentage points higher than the 7.4 per cent recorded in February. The [...]
What is the difference between good and bad deflation? May 19, 2015 Official data released today has shown that the UK slipped into deflation for the first time in over 50 years. Normally the word deflation has economists running for the hills, but this time around the mantra has been that this is very much a case of "good deflation". But just what is good deflation, and [...]
Inflation turns negative for the first time in over 50 years – but it should only be a blip May 19, 2015 Britain fell into deflation for the first time since the 1960s after data released today showed the consumer price index (CPI) had dipped into negative territory. The Office for National Statistics said prices fell 0.1 per cent in the year to April on a fall in air and sea fares due to the timing of [...]
Greece insists deal to avoid bankruptcy is imminent as Jean-Claude Juncker offers a lifeline May 18, 2015 Greek officials expect technocrats to nail down an agreement this week that would unlock billions of euros to help the country and avoid it going bankrupt. The renewed optimism may have been the result of an intervention by European Commission (EC) Jean-Claude Juncker. Reports in Greek media suggest Juncker has outlined a much more favourable [...]