UK housing market: Remortgaging spurred on by Bank of England interest rate hike threat August 26, 2015 Remortgaging has surged as the prospect of an interest rate rise leads homeowners to lock in better deals. The number of people switching to lower rates was 29 per cent higher in July than in the some month last year, figures released yesterday by the British Bankers’ Association (BBA) showed. “Savvy homeowners are snapping up [...]
Jeremy Corbyn slams rail fare rise as “rip off” August 19, 2015 Regulated rail fares may be set to rise by just one per cent next year, but Labour leadership front-runner Jeremy Corbyn has called them a “rip off”, insisting only his plan to renationalise the railways will deliver savings for consumers. Speaking at a rally at Kings Cross Station yesterday, Corbyn said that “extricating the [...]
Don’t fear low inflation: It’s great news for consumers while it lasts August 18, 2015 The latest retail figures in the UK showed good growth. Things are also looking up in the US and in much of the euro area. The world economy has settled into a period of steady growth with very little inflation in the major economies. Indeed, just yesterday, official figures revealed that consumer price index inflation [...]
UK inflation: Pound hits seven-week high as inflation unexpectedly hits 0.1 per cent in July August 18, 2015 The pound hit a seven-week high against the greenback this morning as investors cheered a better-than-expected inflation figure. Official data showed the consumer price index rose 0.1 per cent in the year to July, from zero a month earlier, beating economists' expectations for no change. Nevertheless inflation still remains well below the Bank of England's target [...]
UK inflation: Business groups IoD and BCC split over when BoE should raise rates August 18, 2015 Two of Britain's biggest business groups have clashed over when the Bank of England (BoE) should raise interest rates, after today's inflation data. Official data released this morning showed inflation unexpectedly rose 0.1 per cent in the year to July. But this remains well below the BoE's target for two per cent. At the same [...]
Chinese stocks tumble as Shangai Composite and Shenzhen Composite close six per cent lower August 18, 2015 Stocks in China plummeted overnight on concerns about weak demand in China, as well as disappointing manufacturing figures from the US. The Shanghai Composite – which has suffered in recent weeks as the People's Bank of China (PBoC) devalued the renminbi against the dollar – closed 6.15 per cent lower, at 3,748 points. Meanwhile, the [...]
UK inflation: Rail fares have risen “three times faster” than wages – but next year will be lowest increase for years August 18, 2015 Next year could the the first time in years that commuters beat the annual rail fare rise, with the rate based on July's inflation data published today. Economists have previously tipped the inflation measure to be around one per cent for July – the month which regulated rail fares are set by. That would make it [...]
Bank of England policymaker Kristin Forbes warns against keeping interest rates low for too long August 17, 2015 Bank of England policymaker Kristin Forbes has warned keeping interest rates low for too long risks undermining Britain's economic recovery. Earlier this month, when the monetary policy broke unanimity and voted 8-1 to hold rates, Forbes chose to stick with the majority. The US economist and external member of the monetary policy committee (MPC) said there [...]
Noflation: UK inflation expected to remain at zero August 16, 2015 Inflation is expected to remain at zero, or noflation as it has been dubbed, due to falling oil prices and a strong pound. Forecasters believe the official data from the Office of National Statistics due out on Tuesday, will show that prices remained the same in July. "Given renewed oil price weakness, with Brent crude [...]
Bank of England deputy governor Ben Broadbent says “no urgency” to raise rates; would be “foolish” to pre-announce interest rate hike date August 7, 2015 Bank of England (BoE) deputy governor Ben Broadbent has played down expectation that there could be a rate rise by the end of 2015. Mark Carney's second-in-command this morning said his boss's speech "did not say we can expect a rate rise around the turn of the year", adding it was "impossible" and "foolish" to pre-announce [...]