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Economics

  • Bank of England won’t hesitate to hike rates if inflation persists, warns Andrew Bailey

    July 10, 2023

    The Bank of England will have to keep on lifting interest rates if wages keep rising at a near record pace and businesses continue to pass on swelling costs, Governor Andrew Bailey has signalled today. In a speech delivered at the annual Mansion House bankers’ dinner, Bailey said price pressures emanating from the labour market [...]

  • Accelerating redundancies ‘big concern’ for UK economy as firms sweat over recession

    July 10, 2023

    Accelerating redundancies sparked by businesses sweating over whether the UK economy is on course for a recession are a “big concern” for the country, experts have warned today. Company layoffs have pushed the volume of unemployed workers available for jobs to its highest level since December 2020, when the UK was in the teeth of [...]

  • Wage growth has ‘passed its peak’ as Andrew Bailey prepares to address City on interest rates 

    July 10, 2023

    Workers returning to the jobs markets and boosting the volume of candidates available to businesses are poised to put a lid on wage growth, analysts are predicting official numbers this week will show. Pay growth is said to have “passed its peak” after raging for more than a year, fuelled by staff demanding wage increases [...]

  • London economy steams ahead of every other UK region but interest rate hikes contain growth

    July 10, 2023

    London’s economy is steaming ahead of every other region in the UK, but there are signs higher interest rates and a return of recession jitters is holding the capital back, a new survey out today shows. Economic growth in London in June was far above the UK average and even its closest competitor, the south [...]

  • Hunt downplays tax cuts odds, conceding calming inflation is tougher than feared

    July 8, 2023

    Tax cuts was growing less likely as Chancellor Jeremy Hunt signalled the pledge to halve inflation was proving harder than expected.

  • FTSE 100 tumbles to year low and gives up 2023 gains after hitting record high just months ago

    July 6, 2023

    London’s FTSE 100 tumbled to its lowest closing level this year today as the index was captured by a global stock market sell off ignited by traders fretting over further interest rate rises. The capital’s premier index cratered 2.24 per cent, its biggest one day fall since March, to close at 7,275.60 points, while the [...]

  • Bank of England governor Andrew Bailey slams firms for participating in ‘greedflation’

    July 6, 2023

    Businesses charging unfair prices for products must be “tackled” to help bring down inflation, the Governor of the Bank of England has claimed. Andrew Bailey, speaking to the BBC’s Newsround programme, said there is evidence that some retailers are “charging too much” for petrol. His comments come after the UK’s competition watchdog, the Competition and [...]

  • House building craters to weakest level in 14 years amid Bank of England interest rate rises

    July 6, 2023

    The Bank of England’s series of aggressive interest rate hikes to pull back raging inflation is wreaking havoc on house building, dealing a blow to first time buyers hoping to get on the property ladder any time soon, a closely watched survey out today shows. According to S&P Global and the Chartered Institute of Procurement [...]

  • Less than half of companies plan to hike prices in boost for Bank of England and inflation

    July 6, 2023

    Less than half of companies plan to lift prices over the coming months in a sign that inflation may finally be starting to budge after staying high for around a year and a half, a new survey out last night showed. Analysis from the British Chambers of Commerce (BCC) found that companies are considering scaling [...]

  • Yield on fresh UK government debt hits highest level since 2007

    July 5, 2023

    The amount of interest the UK government has to pay investors buying its newly minted debt has hit its highest level since the financial crisis. Britain’s Debt Management Office (DMO) – the body tasked with issuing bonds – today sold a tranche of gilts to traders with a yield just shy of 5.7 per cent, [...]

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