Editorial: Andrew Bailey’s guidance is a sign of just how shaky the economy looks November 4, 2022 The latter is always second guessing where governor Andrew Bailey and the rest of the monetary policy committee will send interest rates. The former rarely provides any clues. Investors’ rate expectations are shaped by thousands of pieces of data, but they essentially boil down to a couple of key themes. Firstly, inflation. Markets make their [...]
Business leaders urge govt to restore ‘hard-won reputation for stability’ after rate rise and recession warning November 4, 2022 The government’s must restore the UK’s “hard-won reputation for stability” after this week’s rate hike and warning about a prolonged recession. A top wonk at the Confederation of British Industry responded to the Bank of England’s “bumper rate rise” to 3 per cent shows “the scale of the UK’s inflation challenge”. With inflation now over [...]
Bank of England delivers largest rate hike since 1989 and signals more to come November 3, 2022 The Bank of England today hiked interest rates by the largest amount since 1989 and signalled more rises are coming. The Bank’s rate setting committee voted unanimously to lift borrowing costs 75 basis points to three per cent, the highest level since 2008 and the eighth rise in a row. The pound shed more than [...]
UK economy headed for record recession if rates rise sharply, BoE warns November 3, 2022 The UK economy is on course to suffer the longest recession since records began if interest rates rise sharply, triggered by a toxic mix of higher mortgage costs, prices and energy bills, the Bank of England said today. Gross domestic product (GDP) will shrink for 24 consecutive months, beginning in the early stages of next [...]
Federal Reserve hikes rates 75bps again and Powell signals higher peak November 2, 2022 The US Federal Reserve today hoisted the world’s most important interest rate 75 basis points for the fourth time in a row and signalled the borrowing cost peak will be higher than previously thought, scrapping any bets on a so-called “Fed pivot”. The Washington headquartered central bank hiked rates to a target range of 3.75-four [...]
Exclusive: Confidence in Bank of England hits rock bottom as investors call Bailey’s hiking cycle ‘wrong’ November 2, 2022 Investor confidence in the Bank of England is close to rock bottom as the country braces itself for an eighth successive hike in interest rates tomorrow. Nearly three in four investors feel the Bank had gotten its hiking cycle “wrong”, though respondents were sharply divided over whether rises had come too fast or too slow, [...]
Bank of England successfully kicks off QT with over subscribed £750m bond sale November 1, 2022 The Bank of England today successfully sold hundreds of millions pounds of government debt in the first stage of winding down stimulus that has propped up the economy in the aftermath of the financial crisis and during the pandemic. Some £750m bonds ran off the Bank’s balance sheet today, with the auction heavily over subscribed [...]
Bank of England, Home Office, MI5 and News Corp HQ targeted by Just Stop Oil vandalism October 31, 2022 The Bank of England was among London landmarks targeted by environment activists this morning, along with the Home Office, MI5 and headquarters of News Corp. Two Just Stop Oil demonstrators were arrested by City police outside the Bank of England, after the building was covered in orange paint. The City of London Police said the [...]
Soaring interest rates could spark five per cent London house price fall October 31, 2022 Soaring interest rates and a tough cost of living crisis could send London house prices on a downward spiral, new research published today warns. Home prices in the capital are on course to shed five per cent next year, driven by sellers dropping prices to attract buyers hit by an affordability crunch, according to property [...]
Week ahead: Bank of England to rock markets with 75bps rate hike October 30, 2022 Markets are preparing for a steep rate hike by the Bank of England on Thursday, but not as bad as first feared after former prime minister Liz Truss’s tax cutting mini-budget last month. London’s premier FTSE 100 index posted a decent performance last week, adding 1.12 per cent to close at 7,047.67 points, while the [...]