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Economics

  • Andrew Bailey hints Bank of England is close to ending interest rate hike cycle

    January 19, 2023

    Andrew Bailey has hinted that the Bank of England will stop hiking interest rates soon in an interview today. Speaking to Business Live, the governor of the Bank suggested market expectations of rates peaking at around 4.5 per cent is more in line with the central bank’s own thinking. Though Bailey, 63, said he is [...]

  • House price sentiment at its weakest in 13 years, as fears of recession blight market

    January 19, 2023

    House prices continued to fall towards the end of 2022, according to the Royal Institution of Chartered Surveyors (Rics). The Rics house price balance fell to -42 in December compared to -26 in November, and meant that 42 per cent of surveyors who took part in the survey noted a fall rather than a rise [...]

  • Microsoft confirms it will cut 10,000 jobs

    January 18, 2023

    Microsoft will be making 10,000 job cuts by the end of the third quarter of this year, the company said today confirming earlier reports. As incomes at Big Tech firms continue to decline, Microsoft has joined giants like Google and Twitter in laying off staff. Earlier today, Microsoft issued a statement, saying that the staff [...]

  • FTSE 100 close: Ocado emerges as top dog in 2023 so far, but index pulls away from record high

    January 18, 2023

    London’s FTSE 100 finished slightly lower today, dragging it further away from its record and signalling traders are looking through signs UK inflation has passed its peak and could be a downward trend this year. The capital’s premier index dropped 0.27 per cent lower to 7,830.71 points, while the domestically-focused mid-cap FTSE 250 index, which [...]

  • City analysts betting on Bank of England interest rate cuts by early 2024 – as long as inflation falls quickly

    January 18, 2023

    The Bank of England could cut interest rates as soon as early next year if inflation continues to tumble in 2023, top City analysts have predicted. The rate of price increases is forecast to more than halve which would bring inflation to below five per cent by the end of 2023, according to forecasts from [...]

  • Inflation drops for second month in a row but experts warn rate has yet to pass its peak

    January 18, 2023

    UK inflation has fallen for the second month in a row, but soaring food prices have led some experts to warn it may not have passed its peak yet. The rate of price increases dropped to 10.5 per cent in December, down from 10.7 per cent in the previous month, the Office for National Statistics [...]

  • FTSE 100 close: Ocado drags London index away from record high

    January 17, 2023

    London’s FTSE 100 edged away from its record high today, driven lower by traders ditching middle-class favourite and online supermarket Ocado after it said income has tanked. The capital’s premier index closed 0.12 per cent lower at 7,851.02 points, while the domestically-focused and mid-cap FTSE 250 index, which is more aligned with the health of [...]

  • China economy grows at slowest pace in 50 years outside Covid as population shrinkage signals long-term decline

    January 17, 2023

    China’s economy is growing at the slowest pace since the 1970s, barring the pandemic, due to tough zero Covid restrictions hitting spending, figures out today reveal. The world’s second biggest economy grew three per cent in the three months to December compared to the same period in 2021, beating the consensus forecast of just 1.6 [...]

  • Brits’ take home pay still falling rapidly despite record wage rises

    January 17, 2023

    Brits are suffering one of the sharpest hits to their take home pay despite businesses handing workers bumper pay prices, official figures out today reveal. Real pay tumbled 2.6 per cent over the three months to November, among the steepest drops seen outside the Covid-19 crisis, according to the Office for National Statistics (ONS). The [...]

  • To withstand future recessions, the UK needs radical supply side reform

    January 17, 2023

    When academics write essays, they begin with an abstract that captures the causes, effects and outcomes of the economic policy change they are examining. Boosting the supply side has a pretty simple argument. Either increasing the volume or productivity of resources used to produce things makes a country richer. That’s it. Let’s take a look [...]

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