Inflation slips back in the United States, but Federal Reserve still likely to raise rates in June April 14, 2016 US INFLATION slipped back in March as cheaper clothes and food helped to offset a jump in petrol prices, easing the immediate pressure on the Federal Reserve to raise interest rates. The headline consumer prices index (CPI) came in at 0.9 per cent in the 12 months to March — down from a reading of [...]
Bank of England holds interest rates at 0.5 per cent and steps up its warnings on Brexit April 14, 2016 Brexit could cause a prolonged period of instability in the UK economy, dramatically reduce the value of the pound and weaken growth, the Bank of England has warned, as it voted unanimously to hold interest rates at their record low of 0.5 per cent for another month. The rate-setting Monetary Policy Committee (MPC) made no [...]
Updated figures show the Eurozone isn’t in deflation after all as prices remained unchanged in March April 14, 2016 The Eurozone isn't in deflation after all, official statistics released this morning have shown. The final estimate for the consumer prices index (CPI) measure of inflation for the single currency bloc, released this morning, came in at zero per cent – meaning prices actually remained unchanged over the last 12 months Two weeks ago, Eurostat, the [...]
UK business optimism shattered by “potent combination” of global threats and fears of Brexit April 14, 2016 Confidence among Britain’s businesses slumped in the first quarter of the year, plummeting by the sharpest level anywhere in Europe, according to new research out today. A “potent combination of fragile financial markets, volatility in oil prices, concerns over terrorist attacks and regional issues including the prospect of a Brexit and the US presidential race” [...]
City A.M. shadow MPC: Hold rates until after the EU referendum April 13, 2016 City economists want the Bank of England to hold interest rates on Thursday, citing stuttering growth and Brexit uncertainty as signs that the economy is too fragile to handle higher borrowing costs. City A.M.’s shadow monetary policy committee, made up of nine banking and business economists and analysts, voted seven to two to hold interest [...]
EU referendum: Vote Leave’s John Longworth slams IMF as “wrong consistently” and claims there is no evidence Brexit vote is causing investment delays April 13, 2016 John Longworth, the former head of the British Chambers of Commerce turned Brexit campaigner, has denied there is any evidence investment decisions are being held up by the looming EU referendum. He was speaking after the International Monetary Fund yesterday warned that a so-called Brexit would cause major instability to the UK, European and world economies. [...]
Should we trust today’s forecasts from the IMF? April 12, 2016 The half-yearly growth forecasts from the International Monetary Fund (IMF) are a big deal. They move markets, shape local politics and are generally relied upon around the world. But how accurate are they? Depending on your take, today's substantial revisions are either an indicator or rapid change and sharp volatility, or bring into question the [...]
Osborne welcomes Brexit warning from IMF as it cuts outlook for UK growth April 12, 2016 Brexit could cause major instability to the UK, European and world economies, the International Monetary Fund (IMF) has warned in its latest forecasts for global growth, as Brexit campaigners rounded on the group for "talking down Britain". "A 'Brexit' could do severe regional and global damage," the IMF predicted, as it cut its outlook for growth [...]
George Osborne backs IMF’s growth warnings over Brexit, but won’t talk about austerity April 12, 2016 George Osborne has seized upon the latest evidence that instability ahead of the EU referendum could be weighing on the UK economy – but chose to ignore statements from the International Monetary Fund (IMF) that his austerity programme is also dampening UK growth. In its world economic outlook, launched today, the IMF, downgraded its forecast for the British [...]
Mapped: How the world economy will fare in 2016 April 12, 2016 The International Monetary Fund (IMF) released a gloomy global outlook for the world economy today and warned of a series of risks on the horizon which could upset the fragile recovery. The map below shows the Fund’s latest forecasts for major countries around the world. Though beware, they’ve been subject to some substantial revisions in the past. [...]