Bank of England lookahead: Bailey set to ramp up QE but avoid negative rates June 17, 2020 The Bank of England is widely expected to boost its asset purchase programme by at least £100bn tomorrow, as the central bank ramps up quantitative easing to shore up the UK economy. Governor Andrew Bailey is set to bolster UK stimulus at the Bank’s Monetary Policy Committee (MPC) tomorrow, economists predicted. The expansion of quantitative [...]
US mortgage applications hit 11-year high, homebuilding misses expectations June 17, 2020 Mortgage applications by Americans have hit their highest level since 2009 as people rush to take advantage of record low mortgage rates, but homebuilding in the US increased less than expected in May. Applications for a home loan in the US have surged over the past nine weeks after cratering in early April, according to [...]
History shows us that slavery is an economic catastrophe as well as a moral one June 17, 2020 Slavery has certainly been in the headlines in the past couple of weeks. Given this sudden interest in this area of history, it is worth considering the economic lessons it can teach us, as well as the moral ones. Slavery was abolished in England itself in the twelfth century. Then in 1772, Lord Mansfield gave [...]
UK inflation sinks to four-year low as coronavirus puts pressure on prices June 17, 2020 UK inflation fell to a four-year low in May, driven by falling fuel costs and cuts to clothing prices as coronavirus sucked demand from the global economy. The Consumer Price Index (CPI) dropped to 0.5 per cent last month, the Office for National Statistics (ONS) said, falling from 0.8 per cent in April. Read more: [...]
Fed chair Powell: US economic recovery hinges on coronavirus being under control June 16, 2020 The US economy will not fully recover from the coronavirus pandemic until the American people are sure that the outbreak has been brought under control, Federal Reserve chair Jerome Powell said. “Until the public is confident that the disease is contained, a full recovery is unlikely,” Powell told US lawmakers. In the first of two [...]
Bank of Japan boosts coronavirus lending beyond $1 trillion June 16, 2020 Japan’s central bank has increased its coronavirus lending programmes to over $1 trillion (£792bn) but kept monetary policy on hold, with governor Haruhiko Kuroda signalling that it is bracing for a second wave of coronavirus infections. Kuroda said it was impossible to rule out a second wave, signalling the Bank of Japan’s (BOJ) willingness to [...]
US retail sales post record resurgence in May June 16, 2020 US retail sales recorded a record jump in May, rising far above expectations as Americans began to return to work and resume spending after weeks of lockdown. US retail sales rose 17.7 per cent in May, data from the US Commerce Department showed, reinforcing views that the worst of the economic slump triggered by the [...]
UK unemployment: 612,000 workers lose jobs as vacancies crash to record low in lockdown June 16, 2020 The UK unemployment rate unexpectedly remained unchanged in the three months to April, but workers on company payrolls fell 612,000 between March and May while job vacancies plunged to a record low. The unemployment rate remained unchanged at 3.9 per cent between February and April, new data from the Office for National Statistics (ONS) showed. [...]
Coronavirus loans: UK companies borrow £38.4bn to survive lockdown June 16, 2020 British companies have borrowed £38.4bn under the government’s three emergency credit programmes since the coronavirus pandemic struck. However, the approval rate for coronavirus business interruption loans (CBILS) remains just over half, with 51 per cent of the loans being allowed. Meanwhile, the bounce back loan scheme, which supports small businesses with 100 per cent state-backed [...]
Workers on furlough pass 9m as cost of job support measures nears £30bn June 16, 2020 Over 9m workers in the UK have now been furloughed due to the Covid-19 pandemic at a cost of £20.8bn, new figures from the Treasury show. As of 14 June, 9.1m jobs were being supported by the government’s coronavirus job retention scheme (CJRS) at a cost of £20.8bn, up from £19.6bn the week before. The [...]