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Economics

  • UK inflation shock was bad for the Bank of England – and disastrous for families

    March 22, 2023

    These were not good inflation numbers for the Bank of England. They were even worse for families. Nearly everyone has been taken aback by the Office for National Statistics calculating the annual rate of headline inflation (the consumer price index) snapped a three month falling streak to climb to 10.4 per cent last month. That [...]

  • UK inflation leaps to 10.4 per cent smashing Bank of England and City forecasts

    March 22, 2023

    UK inflation has surpassed forecasts and stayed in the double digits, in a sign the Bank of England will need to keep hiking interest rates to tame prices, official figures out today reveal. The rate of price increases jumped to 10.4 per cent in February, up from 10.1 per cent in January, according to the [...]

  • Nearly every sector of UK economy powers away from feared recession

    March 22, 2023

    Nearly every sector of the UK economy is powering away from a recession that was much-tipped at the turn of the year, a new survey out today shows. Some 11 of the 14 sectors monitored by Lloyds Bank are producing more than they did a month ago, the highest number in nearly a year. The [...]

  • FTSE 100 close: Credit Suisse turmoil eases as Barclays and NatWest claw back losses

    March 21, 2023

    London’s FTSE 100 today shook off market turmoil sparked by UBS saving Credit Suisse, with the UK’s largest lenders, such as Barclays and NatWest, soaring to the top of the index. The capital’s premier index surged nearly two per cent to 7,536.23 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with [...]

  • Bank of England and Fed to ignore Credit Suisse chaos and hike interest rates this week

    March 21, 2023

    The Bank of England and US Federal Reserve are this week expected to ignore the on-going financial market chaos which resulted in Credit Suisse being pawned off in a shotgun sale and hike interest rates. City analysts have tipped Fed Chair Jerome Powell and Bank Governor Andrew Bailey to prioritise fighting inflation instead of shielding [...]

  • UK borrowed record £16.7bn for February but Jeremy Hunt handed interest bill boost

    March 21, 2023

    The UK borrowed a higher than expected £16.7bn in February, a record for that specific month due to the government spending billions on helping families with the cost of energy bills, official figures out today reveal. Office for National Statistics (ONS) numbers indicate Chancellor Jeremy Hunt’s decision to cap typical household energy bills at £2,500 [...]

  • Credit Suisse and Silicon Valley Bank chaos are symptoms of fragile banking system

    March 21, 2023

    City folk around in 2007 must have been getting very twitchy over the last week. Some of the market moves were reminiscent of the early stages of the financial crisis once people clocked on to just how bad banks had messed up. Credit Suisse tumbled more than 30 per cent at one point. Its peers [...]

  • Fed set to hike rates by 25 basis points despite turmoil in US banking sector

    March 20, 2023

    The Federal Reserve is expected to raise interest rates for the ninth time in a row later this week despite widespread instability in the US banking sector.  According to Fedwatch there is a 62 per cent chance that the Fed will opt for a 25 basis point hike and 38 per cent chance that it [...]

  • Banks, bonds, inflation, recession and energy: Five lessons the markets taught us this week

    March 17, 2023

    The third week of March proved to be a rollercoaster for the world’s investors, with a rout on banks and the spectre of inflation, recession and the growing cost of living making their presence felt. These themes may indeed play on in future, so here are the five lessons we’ve learned from the markets this [...]

  • FTSE 100 close: Credit Suisse share price shoots up 30 per cent as HSBC and Lloyds climb in London

    March 16, 2023

    London’s FTSE 100 today partly clawed back yesterday’s losses that saw it clock its worst day in over a year as the index was ensnared by global markets sweating over the health of the European banking system. The capital’s premier index jumped 0.89 per cent to 7,410.04 points, while the domestically-focused mid-cap FTSE 250 index, [...]

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