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Economics

  • Gold notches new high as Trump escalates Venezuela threats

    December 23, 2025

    Gold has returned to its record-breaking routine this week as escalating geopolitical tensions and falling interest rates sent the metal to new highs. The yellow metal was closing in on $4,500 on Tuesday morning, reaching highs of $4,497 in early trading. On Monday, the price of an ounce of gold crossed the $4,400 mark for [...]

  • Business confidence ticked up after Budget, Lloyds Bank says

    December 23, 2025

    Business confidence inched up at the end of 2025, according to a new survey, as firms were brought some relief and clarity after the Autumn Budget. Lloyds Banking Group’s latest Business Barometer found business confidence etched up 10 points by the end of 2025 when compared with the beginning of the year. Half of this [...]

  • ‘Spectre of recession’ looms with growth set to dim in 2026

    December 22, 2025

    The government is facing a critical warning over the looming “spectre of recession” after economic growth stalled in the second half of 2025 and is expected to wane in the new year. On Monday, fresh figures from the Office for National Statistics (ONS) downgraded the economy’s second quarter expansion to a sluggish 0.2 per cent [...]

  • UK economic growth downgraded for second quarter

    December 22, 2025

    Growth in the UK economy was revised downwards on Monday after fresh figures revealed economy expanded less than initially thought in the second quarter. The Office for National Statistics (ONS) cut the UK’s economic growth in the three months to June to 0.2 per cent from 0.3 per cent previously. The third quarter’s sluggish 0.1 [...]

  • UK government borrowing overshoots expectations in November

    December 19, 2025

    UK government borrowing exceeded expectations in November but still fell year-on-year after tax receipts surged following Rachel Reeves’ first Autumn Budget. The latest release from the Office for National Statistics (ONS) showed public sector borrowing topped £11.7bn in November. City economists expected government borrowing to come in at £10.2bn over the month.  Despite this, the [...]

  • ‘Chance of 2026 recession’ despite interest rate cut – follow live

    December 18, 2025

    Welcome back to the City AM liveblog. The Bank of England has handed Chancellor Rachel Reeves and the Labour government a highly-desired Christmas present today.  The central bank confirmed a chop to interest rates falling to 3.75 per cent – the lowest in nearly three years. It comes after inflation undershot expectations on Wednesday providing [...]

  • Interest rate cut likely after inflation undershoots expectations

    December 17, 2025

    Inflation dropped far below market expectations in November, official data has shown, easing Bank of England doves’ nerves a day before a decision on whether to cut interest rates is revealed. The Office for National Statistics (ONS) said inflation hit 3.2 per cent in the year to November, staying well above the Bank’s 2 per [...]

  • FTSE 100 Live: Inflation eases more than expected ahead of rate decision

    December 17, 2025

    Good morning and welcome back to the City AM liveblog. We’ve had the latest inflation data this morning, which has shown the consumer price index (CPI) rose by 3.2 per cent in the 12 months to November 2025. This eased from 3.6 per cent in October 2025. It also beats figures pencilled in by economists, [...]

  • Cut interest rates, City AM Shadow MPC tells Bank of England

    December 17, 2025

    The Bank of England should cut interest rates by 25 basis points when it meets tomorrow, City AM’s Shadow Monetary Policy Committee has said in a three-way split decision.  In the face of the dual problems of high inflation and a continued jobs market decline, the majority of experts on City AM’s nine-strong Shadow MPC [...]

  • Arrogant Labour has played fast and loose with the jobs market

    December 17, 2025

    As the first full calendar year of life under this Labour government comes to a close, it’s an appropriate time to reflect on how they’ve done and how their promises to renew Britain marry up with reality. How can I put this delicately? Ministers should slope off to their constituencies this Christmas with their heads [...]

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