Eurozone inflation reached its highest point in 2.5 years in November on the back of healthy services increases November 30, 2016 Eurozone inflation reached its highest point in two and a half years in November, ahead of next week’s meeting of the European Central Bank (ECB) to discuss interest rates. The annual rate of inflation rose to 0.6 per cent in the month, driven by continued strength in the price of services, according to an early [...]
Bank of England governor Mark Carney says biggest risks to the UK are outside the UK November 30, 2016 The governor of the Bank of England has today said some of the biggest risks facing the UK's financial ecosystem come from places other than the UK itself. Discussing the Bank's stress test results and Financial Stability report, which were released this morning, Mark Carney pointed to China's dependence on credit expansion to fund its growth [...]
The £5 fuss: Now even the vegans are gunning for Carney November 30, 2016 Mark Carney has had a pretty tumultuous year. His critics have lined up to attack him for politicising his office during the referendum campaign while his supporters credit him with being the only the grownup left standing in the wake of it. He has survived bruising encounters with eurosceptic MPs on the Treasury Select Committee. Jacob [...]
Four-year folly: The Office for Budget Responsibility shouldn’t be expected to forecast so far into the future November 30, 2016 Economic forecasts have become a political hot potato. The Office for Budget Responsibility’s (OBR) predictions, presented as part of the chancellor’s Autumn Statement, have put the government under pressure. The OBR has revised down its forecast for GDP growth over the next four years by 1.4 percentage points. The real controversy is that their gloomy projections [...]
Confidence in UK business prospects reaches 10-month high but economic optimism falls 20 per cent November 30, 2016 Confidence in business prospects has risen to a 10-month high for UK businesses, despite a big rise in concerns over the country’s economic health, according to a new survey. Over half of companies said that they expected business prospects to improve in the next year, and only five per cent said they expected their business [...]
IFS director defends forecasts as “the best we have” while Jacob Rees-Mogg says IFS experts are “sticking finger in the wind” November 29, 2016 Economists from the Institute for Fiscal Studies (IFS) have defended their analysis of UK forecasts to parliament's Treasury select committee. Paul Johnson, director of the IFS, maintained his stance on the official data, saying the forecasts from the Office for Budget Responsibility are “the best starting point that we have”. Conservative MP Jacob Rees-Mogg, a [...]
Surprise upward revision of US GDP gives further support for interest rate rise November 29, 2016 US growth surprised analysts by being revised upwards in the third quarter, strengthening the case for the Federal Reserve to raise interest rates at its next meeting in December. Gross domestic product (GDP) increased at an annualised rate of 3.2 per cent from July to September, a big jump from second-quarter growth of 1.4 per [...]
Bank of England branded “disgraceful” for using animal fat in £5 bank notes November 29, 2016 The Bank of England has been branded "disgraceful" for using a form of animal fat, called tallow, in its new £5 bank notes. The bank admitted using the material on Twitter. Mark "Carnivore" Carney has not yet waded into a debate that is giving a whole new meaning to the term "Capitalist Pigs". Read more: Bank [...]
Eurozone business confidence falls but Brexit effect seems to have worn off November 29, 2016 Business confidence in the Eurozone fell in November, surprising analysts after a widely followed measure posted healthy gains in the previous two months. However, the indicator represents a relatively stable outlook after Brexit lows and ahead of a year of major political events in Europe. The business climate indicator, which reflects the results of a [...]
UK consumer borrowing continues to rise in October November 29, 2016 Lending to UK households grew in October, as British consumers continued to borrow money in spite of the vote to leave the European Union. Consumer credit grew by an annual rate of 10.5 per cent in October, marginally faster than the 10.4 per cent rate reported for September. This translates to an increase of £1.6bn [...]