UK inflation rate holds steady at 1.9 per cent sending Britons’ real wages higher April 17, 2019 The UK’s headline annual inflation rate remained unchanged in March, staying at 1.9 per cent, meaning Britons’ real wages are increasing as pay growth outstrips price rises. Read more: London house price plunge drags down UK-wide growth rate Meanwhile the inflation rate including housing costs and council tax stayed at 1.8 per cent, where it [...]
Businesses must tackle climate change or ‘fail to exist, Bank of England governor Mark Carney warns April 17, 2019 Businesses must tackle climate change or “fail to exist”, Bank of England governor Mark Carney warned this morning. The financial sector has to act on climate-related risks, Carney said in a joint article with French central bank governor Francois Villeroy de Galhau and Network for Greening the Financial System (NGFS) chair Frank Elderson in The [...]
Monetary policy is too crucial to leave in Labour’s meddling hands April 16, 2019 Even by Donald Trump’s standards, it was an extremely Donald Trump thing to do. Last week, the President nominated Herman Cain for a seat on the board of the Federal Reserve, attempting to hand oversight of the world’s largest economy to a maverick gold-standard enthusiast. The nomination appears to be doomed, largely because of the [...]
Corbyn is as much a threat to the City as a no-deal Brexit April 16, 2019 The Prime Minister is currently on a walking holiday in Wales, while parliament is on Easter recess. This would be a moment for calm, except that Theresa May’s infamous walking holiday in April 2017 ending in her calling an unexpected General Election. Avid Westminster watchers are nervously wondering whether another snap poll is imminent. While [...]
Could Jacob Rees-Mogg soon be off to 11 Downing Street? April 12, 2019 The Conservative party has a shortage of the political equivalent of rock stars. These are the politicians that the public would not merely recognise (already a rather an elite cohort), but actually might cross the road to ask for an autograph – or, more usually these days, a selfie. Boris Johnson has this star quality, of course. [...]
Labour’s desire for the Bank of England to control UK house prices is disastrous and illogical April 12, 2019 The Bank of England should be responsible for boosting the UK’s productivity, according to the Labour party, which wants Threadneedle Street to dictate how banks lend money to businesses. Under the leadership of Jeremy Corbyn and John McDonnell, Labour also wants to keep RBS nationalised in order to direct its lending; turn Post Offices into [...]
Jeremy Corbyn and Alexandria Ocasio-Cortez love Modern Monetary Theory, but it is just the magic money tree again April 10, 2019 As the Brexit process unfolds, the possibility of a Corbyn government has become much more tangible. Last month, John McDonnell, the shadow chancellor, wrote to the Treasury to say that in power he would require them to “widen the range of economic theories and approaches in which its officials and those in the rest of [...]
Poll: Sterling set to rise three per cent if Brexit deal looks likely April 5, 2019 Sterling will jump three per cent if it looks likely the government will secure a Brexit deal, but will drop five per cent if talks fail, according to a Reuters poll. The pound plummeted following the 2016 referendum and has been volatile ever since as the market reacts to every development in the Brexit negotiations. [...]
Brexit uncertainty has cost the UK economy £66bn, says S&P April 4, 2019 Brexit has cost the UK economy £66bn in lost growth, according to ratings agency S&P. Had the UK voted to remain in the EU in 2016s referendum the economy would have been three per cent larger by the end of 2018, the group’s report said. Read more: Brexit delay wins MPs' support by a margin [...]
Preparing for a black swan event in the financial markets March 27, 2019 Global markets are more complex and interconnected than ever. Since the 2008 financial crisis, it’s become increasingly difficult to predict how the behaviour of market participants will affect the broader financial system. Meanwhile, increased automation and the use of high-frequency trading have contributed to flash crashes. We struggle to manage the rapid market movements that [...]