2015 IMF growth forecast: UK pulling ahead but global economy downgraded January 19, 2015 The UK has managed to avoid a downgrade to its 2015 growth forecast by the International Monetary Fund. The IMF’s updated predictions released today also place the UK as the fastest economy in the G7 in 2014 with growth of 2.7 per cent. However, the UK is set to lose its “fastest G7 economy” crown [...]
Fall in oil prices provides boost for UK economy January 18, 2015 The UK economy is set to benefit from the collapse in oil prices, according to the most recent quarterly forecast from the EY-sponsored Item Club. The economic forecasting group has stated that the decline in oil and other commodity prices will provide a “shot in the spending arm” for UK consumers, who will have more [...]
Interest rates to remain at historic lows until 2016 amid falling oil price January 18, 2015 The collapsing price of oil could see interest rates remain at their historic lows until 2016, according to top economists. The UK is likely to grow at 2.9 per cent this year, say the EY Item Club in part thanks to lower oil prices. The group hiked their forecast by 0.5 per cent point since [...]
Swiss franc surges after central bank scraps currency ceiling and slashes interest rates January 15, 2015 The Swiss franc has surged against the euro after the central bank scrapped a currency "ceiling", and took interest rates even further into negative territory. The Swiss franc was up as much as 37 per cent against the euro before later paring gains. Swiss shares shed some 10 per cent after investors rushed into safe-haven [...]
Euro tumbles to new nine-year low after Swiss central bank slashes interest rates January 15, 2015 The tumbled to new nine-year low after the Swiss central bank slashed interest rates to -0.75 per cent and scrapped its currency "ceiling." The euro fell to $1.1685 against the US dollar following the shock announcement by its central bank. The FTSE Eurofirst 300 initially shed 2.1 per cent before recovering to trade down 1 [...]
Policy hawks stand ground despite sinking inflation January 13, 2015 A drop in the inflation rate to 0.5 per cent has not been enough to reverse the positions of monetary policy hawks – economists favouring a hike in interest rates. “We think the economy is growing strongly enough to take a normalisation of monetary policy and we’re sticking by that,” James Sproule, chief economist at the [...]
Inflation has fallen below target: Should the UK be worried? January 13, 2015 Lower price rises are a boost for the UK but something to be feared in Europe. Why target inflation? Inflation is the increase in average prices in the economy over a period of time – normally a year. It is calculated by looking at a typical basket of goods, and seeing how the price [...]
UK Inflation: Walkmans, videos and rollerblades – this is what the basket of goods looked like last time inflation was this low January 13, 2015 The last time inflation was this low, shoppers were still buying Walkmans, recording their favourite TV shows using a VHS recorder – and rollerblades were A Thing. Prices rose just 0.5 per cent in December, the latest ONS figures reveal, the slowest rise since records began in 1989, and on a par with May 2000’s [...]
UK inflation: Consumer price index falls to 0.5 per cent in December January 13, 2015 Crumbling energy and petrol prices dragged the rate of inflation to a joint low since records began in 1989, forcing Bank of England (BoE) governor Mark Carney to write an open letter to the chancellor explaining the fall. The consumer prices index (CPI) rose just 0.5 per cent in the year to November, the Office [...]
Mark Carney set to write inflation letter next month January 12, 2015 INFLATION is expected to have dropped too far below the Bank of England’s target, prompting an embarrassing letter from Mark Carney to George Osborne to explain what went wrong. But instead of sending the letter the moment the inflation data is published – at 9.30am this morning – the governor of the Bank will now [...]