Taxpayer to hand over £150bn to Bank of England to cover QE losses July 25, 2023 Taxpayers will have to foot a £150bn bill to cover cumulative losses on the Bank of England’s bond buying scheme over the coming decade, a new projection has claimed today. The Treasury is forecast to inject hundreds of billions of pounds into the central bank’s balance sheet to make up for a shortfall in its [...]
IMF warns Germany and UK will be G7’s laggards this year despite upgrades July 25, 2023 Britain is on course to register the second weakest growth in the clutch of rich countries this year, beaten only by Europe’s economic powerhouse Germany, which will be the only advanced economy to contract this year, the world’s lender of last resort has signalled today. UK output will expand 0.4 per cent this year, the [...]
UK recession risk just got a whole lot lower after inflation undershoot July 25, 2023 From the Bank of England to recession warnings, Jack Barnett gets under the skin of Britain’s economy in his weekly column Bank of England Governor Andrew Bailey would not have been the only person in the City last week breathing a sigh of relief after the better than expected inflation numbers. It was the first [...]
Eurozone edges nearer to recession while UK economy ‘stalls’ July 24, 2023 The European economy has edged closer to recession, while the UK is on the brink of slipping into negative growth, closely watched surveys out today reveal. A snapshot of the eurozone’s respective economies showed high inflation and the European Central Bank’s (ECB) efforts to tame it with interest rate rises is cooling activity. Hamburg Commercial [...]
Federal Reserve and European Central Bank may back final rate rises this week, experts bet July 24, 2023 US Federal Reserve and European Central Bank officials could launch their final interest rate rises this week as inflation ebbs in their respective economic blocs, experts are betting. Members of the federal open market committee (FOMC) are on Wednesday tipped to raise borrowing costs 25 basis points to a range of 5.25 per cent and [...]
UK inflation will top Bank of England two per cent target until end of 2024, EY claims July 24, 2023 Inflation will top the Bank of England’s two per cent target for over a year, hobbling UK economic growth and eroding workers’ finances, new forecasts out today claim. Prices are set to ease much slower than previously expected due to food and energy costs remaining elevated, according to consultancy the EY Item Club. UK inflation [...]
Brits finally sober up to high inflation and interest rate hikes as confidence slides July 21, 2023 Brits have finally sobered up to the damaging impact high inflation and the Bank of England’s interest rate hikes to tame it is having on their finances, a closely watched survey out today shows. Consumer confidence has dropped for the first time since January, down six points to minus 30 in July, according to research [...]
FTSE 100 close: Dovish Bank of England interest rate bets extend London gains July 20, 2023 London’s FTSE 100 extended gains today as traders continued to cheer signs that UK inflation may have finally turned a corner. The capital’s premier index hopped 0.76 per cent to 7,646.05 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, was broadly unchanged at 19,311.73 [...]
Mortgage costs slip for first time since May as Bank of England rate bets cool on inflation drop July 20, 2023 Mortgage rates have dropped for the first time in two months, sparked by banks passing on a reduction in interest rate bets after yesterday’s better than feared inflation figures. The average rate on two-year mortgages fell to 6.79 per cent yesterday from 6.81 per cent, according to financial data provider Moneyfacts. It is the first [...]
Vistry reports 22 per cent slide in home completions as rate hikes bite July 20, 2023 Vistry Group said the number of homes it completed during the quarter was down 22 per cent compared to the same period last year, as surging mortgage rates continue to hit UK housebuilding companies. The London-listed firm blamed a “tough” economic climate for the decline, with the housebuilder completing 2,847 homes in the period down [...]