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Economics

  • IMF: Risks to financial stability have ‘increased rapidly’ but won’t threaten fight against inflation

    April 11, 2023

    Risks to financial stability have “increased rapidly” since October last year but they were unlikely to be big enough to distract central banks from fighting inflation, the International Monetary Fund (IMF) said today. The global economic watchdog’s biannual financial stability report pointed to a range of different threats to financial stability following the turmoil in the banking [...]

  • FTSE 100 close: Glencore and Rio Tinto power London index upwards despite downbeat IMF projections 

    April 11, 2023

    London’s FTSE 100 kicked off a shortened trading week in robust fashion today, lifted by miners scaling higher despite the International Monetary Fund (IMF) warning the global economy is on course to suffer a sharp slowdown over the coming decade. The capital’s premier index jumped 0.57 per cent to 7,785.73 points, while the domestically-focused mid-cap [...]

  • Soft landing? Why the latest jobs data could leave the Fed with a tricky call

    April 10, 2023

    Analysts are divided about whether the US Federal Reserve should hike rates again as they digest last week’s figures on the labour market.  On Friday last week, a closely watched survey of the US labour market showed the economy added 236,000 new jobs in March.  While more jobs are still being added, the report suggests [...]

  • IMF and World Bank meetings: What will central bankers and finance chiefs be talking about?

    April 10, 2023

    The International Monetary Fund (IMF) and World Bank are meeting in Washington this week for their Spring meeting with the stability of the banking sector high up the agenda.  Finance ministers and central bankers from around the world will come together with much to discuss, particularly after the collapse of Silicon Valley Bank sent shockwaves [...]

  • US economy adds 236,000 jobs in March as Fed rate hikes help cool labour market

    April 7, 2023

    The US added 236,000 new jobs in March, the latest sign that the labour market is beginning to cool as the US Federal Reserve (Fed) continues to hike interest rates.  The number of new jobs fell below the number added in February and the average monthly gain of 334,000 recorded in the last six months, [...]

  • Global growth to dive below three per cent and stay there till 2028, IMF chief warns

    April 6, 2023

    World economic growth will dip below three per cent during 2023 and is likely to stay at that level for the next five years, the head of the International Monetary Fund (IMF) said today. Kristalina Georgieva, IMF managing director, made the assessment during a prepared speech while visiting Washington DC in advance of the IMF [...]

  • Is HS2 holding up the UK’s construction industry? Output up but housebuilding continues to fall

    April 6, 2023

    Civil engineering rose at its highest level since 2009 in March, according to a leading global index which measures the monthly construction output of the UK economy. At 50.7 in March, the headline seasonally adjusted S&P Global /CIPS UK Construction Purchasing Managers’ Index (PMI) – which measures month-on-month changes in total industry activity – was [...]

  • UK economy: Flat services sector could ease fears of more interest rate hikes although recession fears still loom

    April 5, 2023

    The British services sector continued its recovery from recent woes as it expanded again in March, although more slowly than in February meaning recession still stalks the UK economy. The S&P Global/CIPS UK services PMI survey showed a reading of 52.9 last month, down from a score of 53.5 in February. Experts had forecast that [...]

  • Bank needs to ‘see the job through’ on inflation, says Pill – but divisions remain

    April 4, 2023

    The chief economist at the Bank of England, Huw Pill, has suggested that more work is needed to tame price rises because there is a danger of high inflation becoming embedded in the UK economy. “The onus remains on ensuring enough monetary tightening is delivered to ‘see the job through’ and sustainably return inflation to [...]

  • Let’s face it: Profiteering is feeding the inflation beast, not just pay rises

    April 4, 2023

    Inflation is a pernicious beast that is plainly bad for people and businesses.  It can ease governments’ debt burdens by (artificially) boosting tax revenues, but that can lead to severe bouts of price rises that, often, lead to societal decay. So it’s easy to see why policymakers in the UK are sweating over the rate [...]

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