Sterling sheds gains against dollar as Brexit fears weigh June 12, 2020 The pound shed early gains against the dollar this afternoon as concerns over Brexit coupled with dire UK economic data weighed on sterling. Sterling has been edging lower this week after rising 3.9 per cent against the dollar in last week’s rally. Having recovered briefly this morning to touch $1.2653, the pound soon flattened back [...]
UK economy shrinks 20 per cent in April lockdown in worst ever month June 12, 2020 The UK economy shrank by a record 20 per cent in the first full month of lockdown as shops sent workers home to close for the duration of April. Activity in the UK economy contracted by 20.4 per cent in April, the Office for National Statistics (ONS) said today, marking the single largest monthly drop [...]
IMF says $10 trillion has been spent battling coronavirus but more is needed June 11, 2020 The global response to the coronavirus pandemic has cost governments around $10 trillion, but further efforts are needed to battle the outbreak, according to the head of the IMF. New estimates suggest that up to 100m could fall into extreme poverty as a result of the pandemic, IMF managing director Kristalina Georgieva has said. She [...]
US Federal Reserve keeps interest rates near zero through 2022 June 10, 2020 The US Federal Reserve has said it will not raise near-zero interest rates until at least 2022, as it predicted a decline in growth. Along with the rate decisions, central bankers projected a 6.5 per cent fall in GDP this year and a 9.3 per cent unemployment rate by the end of the year. “The [...]
Covid-19 recession will be ‘different’ to others, says BoE’s Andrew Bailey June 10, 2020 The recession triggered by the coronavirus pandemic will be “different” to others, but some early signs of recovery are already apparent, Bank of England governor Andrew Bailey said. Speaking at a panel discussion today, Bailey said he could already see some signs of economic recovery as lockdown restrictions are lifted in the UK, but warned [...]
ECB may expand bond buying in future but no need yet, says board member June 10, 2020 The European Central Bank (ECB) may expand its crisis-fighting toolkit in the future but is not planning to do so imminently, a board member said, playing down the possibility of the central bank buying bonds issued by banks or by junk-rated companies. The ECB last week boosted its Pandemic Emergency Purchase Programme to €1.35 trillion [...]
OECD: UK economy to take world’s biggest hit from Covid-19 June 10, 2020 The UK will suffer the largest economic hit from the coronavirus pandemic among major nations this year, the Organisation for Economic Cooperation and Development (OECD) has warned. Predicting that the UK economy could contract between 11.5 and 14 per cent in 2020, the organisation said Covid-19 represents the biggest peacetime economic downturn in a century [...]
US inflation falls for third straight month as coronavirus hammers economy June 10, 2020 US consumer prices fell for a third straight month in May and underlying inflation was weak as demand remained subdued amid the recession caused by the Covid-19 pandemic. The Consumer Price Index (CPI) fell 0.1 per cent in May, after decreasing 0.8 per cent in April, new figures from the US Labour Department showed. Read [...]
FOMC decision: Four things to expect from the Federal Reserve’s June meeting June 10, 2020 Policymakers at the US Federal Reserve are set to publish their first set of economic projections of 2020 later today when the Open Market Committee (FOMC) makes its June decision. The Federal Reserve is widely expected to leave interest rates near zero at its FOMC June decision. But all eyes are on the meeting for [...]
Get the Bank of England focused on the real economy June 10, 2020 Economic policy is returning to its usual position of prominence. Fears of a major rise in unemployment are starting to worry the government more than fears around Covid-19. The chancellor’s imaginative schemes concerning furlough and other measures to protect jobs create potential problems elsewhere. So much money is being borrowed that the ratio of public [...]