Inflation set to stay low for up to three years November 12, 2014 THE BANK of England (BoE) yesterday shifted its expectations of a first rate hike to late 2015 as it forecast inflation to stay below target until 2017. The UK’s economic growth was predicted to slow in 2015 to 2.9 per cent after forecasting 3.5 per cent growth for the whole of 2014. Weak growth in [...]
As the Bank of England predicts low inflation for longer, is real wage growth here to stay? November 12, 2014 Rob Wood is chief UK economist at Berenberg Bank, says Yes. Real wage growth is here to stay, but it’s important to keep some perspective. We are finally seeing wages rise above inflation, partly because petrol and food price falls have dragged the latter down. Money wage growth remains weak, if better than a few [...]
Quarterly inflation report: Bank of England signals no interest rate hike until autumn 2015, cuts growth and inflation forecasts November 12, 2014 No rate rise until next autumn – that was the message from Bank of England governor Mark Carney in his quarterly inflation report this morning. "What really matters is the broad process of monetary policy, not a specific date for the first interest rate rise", Carney said, causing markets to predict the first increase will [...]
UK unemployment sticks at 6 per cent – as wage growth finally rises above inflation November 12, 2014 UK unemployment remained flat at six per cent in the three months to September, slightly missing analyst expectations, official statistics published this morning showed. In total there were 30.79m people in work, according to the Office for National Statistics (ONS). This was 112,000 more than for April to June 2014 and 694,000 more than for a year [...]
Inflation dips to four-year low in China as economy slows down November 10, 2014 Inflation in China remained low in October, signalling the economy was still cooling. The consumer price index – the headline inflation figure – was 1.6 per cent higher in October than it was last year, according to figures yesterday released by the National Bureau of Statistics. Annual CPI is at its lowest since December 2009. [...]
Bank’s inflation report to give clues on rates – London Week November 9, 2014 MARKET attention this week will focus on the Bank of England’s Inflation Report, due for release on Wednesday, and the latest set of macroeconomic projections contained within it. The figures will help investors and analysts to determine just how far market expectations for the first hike in the interest rate have been pushed back. The [...]
How to guard against inflation when investing in bonds November 4, 2014 Periods volatility in equity markets typically see investors flee to the apparent safety of fixed income – especially the bonds of major Western governments, the yields on which are often described as the “risk-free” rate. But as Christopher Maule of the UK Bond Network argues, it’s a strange definition of “risk-free” that sees investors exposed [...]
Pay rises next year will finally beat inflation October 23, 2014 Wages look set to outpace inflation throughout 2015, according to new research published today. Private sector employers are predicting pay awards of two per cent over the coming year. The research comes from XpertHR, a human resources company, which has surveyed 282 organisations with regard to pay and reward in the year to 31 August [...]
Weak inflation knocks sterling to 11-month low October 14, 2014 THE POUND fell sharply yesterday as UK inflation for September came in below expectations, reducing the chance of a 2014 interest rate hike. Prices rose at their slowest pace for five years, according to the Office for National Statistics (ONS), prompting sterling to sink last night to an 11-month low of $1.5905 to the pound. [...]
Inflation falls again: Consumer Price Index falls to a five-year low of 1.2pc in September October 14, 2014 The consumer price index (CPI) of UK inflation fell even further than expected, down to 1.2 per cent in September from 1.5 per cent the previous month, hitting a five-year low. CPI was expected to slow slightly to 1.4 per cent according to analyst forecasts. But the slump is even further below the Bank of [...]