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Economics

  • ‘Chance of 2026 recession’ despite interest rate cut – follow live

    December 18, 2025

    Welcome back to the City AM liveblog. The Bank of England has handed Chancellor Rachel Reeves and the Labour government a highly-desired Christmas present today.  The central bank confirmed a chop to interest rates falling to 3.75 per cent – the lowest in nearly three years. It comes after inflation undershot expectations on Wednesday providing [...]

  • Interest rate cut likely after inflation undershoots expectations

    December 17, 2025

    Inflation dropped far below market expectations in November, official data has shown, easing Bank of England doves’ nerves a day before a decision on whether to cut interest rates is revealed. The Office for National Statistics (ONS) said inflation hit 3.2 per cent in the year to November, staying well above the Bank’s 2 per [...]

  • FTSE 100 Live: Inflation eases more than expected ahead of rate decision

    December 17, 2025

    Good morning and welcome back to the City AM liveblog. We’ve had the latest inflation data this morning, which has shown the consumer price index (CPI) rose by 3.2 per cent in the 12 months to November 2025. This eased from 3.6 per cent in October 2025. It also beats figures pencilled in by economists, [...]

  • Cut interest rates, City AM Shadow MPC tells Bank of England

    December 17, 2025

    The Bank of England should cut interest rates by 25 basis points when it meets tomorrow, City AM’s Shadow Monetary Policy Committee has said in a three-way split decision.  In the face of the dual problems of high inflation and a continued jobs market decline, the majority of experts on City AM’s nine-strong Shadow MPC [...]

  • Arrogant Labour has played fast and loose with the jobs market

    December 17, 2025

    As the first full calendar year of life under this Labour government comes to a close, it’s an appropriate time to reflect on how they’ve done and how their promises to renew Britain marry up with reality. How can I put this delicately? Ministers should slope off to their constituencies this Christmas with their heads [...]

  • Redundancies hit highest level since pandemic as unemployment climbs higher

    December 16, 2025

    The UK unemployment rate jumped above the 5 per cent mark and redundancies surged to their highest level since the pandemic. The Office for National Statistics (ONS) published damning figures on Tuesday morning that will likely send chills throughout the Labour government ministers ahead of the Christmas break. It said the number of payrolled employess [...]

  • Jobs losses continue in service sector despite ‘rebound’ in UK growth

    December 16, 2025

    Jobs across the services sector declined in December despite some signals of a “rebound” across the UK economy in new survey data.  Analysts at S&P Global said staffing numbers across UK firms continued to drop as the year drew to a close due to “intense cost pressures”. The services sector suffered the most significant drop [...]

  • Public sector jobs and pay increase while private sector struggles

    December 16, 2025

    Public sector employment jumped in September while the number of workers in the private sector fell, official statistics have shown.  Employment in the public sector increased by 7,000 in the three months to September 2025 as total employment reached 6.2m.  The Office for National Statistics (ONS) said employment in central government hit a record high [...]

  • Global recruiter SThree hit by ailing UK jobs market

    December 16, 2025

    Global recruiter SThree has felt the pinch of the deteriorating UK jobs market with the region becoming the group’s worst performing large market. The consultancy – which specialises in connecting workers in science, tech engineering and mathematics with companies in need of staff – recorded a 26 per cent slump in fees in the UK [...]

  • Inflation to remain sticky before interest rates call

    December 15, 2025

    Inflation is expected to remain stubbornly high in fresh data to be released on Wednesday, adding greater scrutiny to the Bank of England’s upcoming interest rates decision.  Price growth is set to remain at 3.5 per cent in the year to November, a slight fall from the month before, according to consensus established by Trading [...]

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