Eyes on Draghi as Eurozone inflation hits two year high October 17, 2016 Inflation across the Eurozone hit a two-year high in September in more good news for Mario Draghi in his war with stagnant prices and sclerotic growth. Prices rose by 0.4 per cent over the 12 months to September, Eurostat said this morning, as measured on the consumer prices index (CPI). That was in line with [...]
EY Item Club: UK economy is surprisingly resilient – but faces a “prolonged period of weaker growth” October 17, 2016 The British economy will be hit by a "prolonged period of weaker growth" as the impact of the EU referendum begins to be felt – but will continue to be resilient, an influential forecaster has predicted. The EY Item Club, which uses the same forecasting model as the Treasury, said GDP growth will hit 1.9 [...]
Ben Broadbent: Pound fall has been a “shock absorber” October 17, 2016 The decline in sterling after the UK voted to leave the European Union has acted as a shock absorber for the economy, according to Bank of England deputy governor Ben Broadbent. "Having a flexible currency is an extremely important thing, especially in an environment when your economy faces shocks that are different from your trading [...]
Why Donald Trump should be closely watching the Mexican peso October 17, 2016 As the odds of a Donald Trump victory lengthened last week, few will have welcomed the news as much as Mexico. The Mexican peso, which fell by 12 per cent in the first nine months of this year, has bounced back as market fears of a Trump win calmed. “The peso has become a bellwether [...]
Downing Street plays down talk of Mark Carney tension October 17, 2016 Downing Street appears keen to play down perceived tension between the Prime Minister and governor of the Bank of England, with allies saying he is "highly regarded". The Bank’s Mark Carney said in a speech on Friday that he would not be told what to do by politicians, adding: Read more: May you leave us [...]
Theresa May is angering both Leavers and Remainers October 17, 2016 Theresa May’s approach to Brexit has proved immensely frustrating to those who found themselves on the losing side of the referendum debate. This frustration, based at first on the idea that the government lacked any kind of plan, is turning into despair at the realisation that the PM does not intend to give any ground [...]
As Mark Carney warns of troubles ahead, should the Bank of England tolerate rising inflation? October 17, 2016 Scott Corfe, associate director at the Centre for Economics and Business Research, says Yes. Inflation will rise next year, and it is likely to rise sharply as sterling’s remarkable decline feeds through into higher import costs. CPI inflation of 3 per cent is well within the realms of possibility and inflation of 4 per cent – [...]
London Remainers drag down consumer confidence in the capital October 17, 2016 London consumers are feeling less confident than the rest of the UK, data out today shows. Confidence fell in London during the third quarter despite climbing to a five-year high across the rest of the country, according to the latest survey from accountancy giant Deloitte. Consumer sentiment in the capital fell by three percentage points over [...]
Footfall drops but shoppers keep spending October 17, 2016 Spending on the high street rose last month despite a decline in footfall, the latest data has shown. Retail spending grew in September by 1.3 per cent, while at the same time both footfall and shop prices have dropped year-on-year, according to figures released today by the British Retail Consortium (BRC) and retail analysts Springboard. Total [...]
May you leave us alone? Mark Carney says Bank of England won’t be instructed by politicians October 15, 2016 Mark Carney has said the Bank of England will not be told what to do by politicians. Speaking shortly after Prime Minister Theresa May questioned the impact of quantitative easing policies, the Bank’s governor said on Friday that his job is sometimes made more difficult by comments from the political world. Read more: Theresa May [...]