UK dodges recession but economy still poised to be below pre-Covid-19 size until end of 2024, BCC forecast March 9, 2023 The UK is poised to avoid a recession this year but suffer a slow burning economic slump that will leave GDP below its pre-pandemic level until the final months of next year, new forecasts out late last night claim. Stronger than expected household spending despite sky high inflation plaguing families’ finances will put the economy [...]
Bank of England risks tipping UK economy into recession with further interest rate hikes, MPC’s Dhingra warns March 8, 2023 The Bank of England risks tipping the UK economy into recession if it raises interest rates too aggressively and worsening the cost of living crisis, a top official said today. Swati Dhingra, an external member of the Bank of England rate setting monetary policy committee (MPC), warned “overtightening poses a more material risk at this [...]
Business groups question Bank of England Mann’s ‘greedflation’ claim March 8, 2023 Business groups yesterday said many firms had no choice but to raise prices to offset high costs in response to a Bank of England rate setter claiming companies are pursuing so-called ‘greedflation’ by pumping up prices to exploit strong consumer spending. Catherine Mann, an external member of the Bank’s rate setting monetary policy committee (MPC), [...]
Bank of England Governor Andrew Bailey warns interest rates may have to rise again to tackle inflation March 1, 2023 Governor of the Bank of England Andrew Bailey has today warned interest rates may need to rise even higher to tame inflation, signalling yet more pain is in store for families and businesses. Speaking at a conference on the cost of living crisis in London, Bailey, 63, said if the Bank does “too little with [...]
Cost of living crisis has forced families to take on £1.1bn debt and dig into savings, says Bank of England March 1, 2023 Families are saving far less than they did over the course of the Covid-19 pandemic and maxing on credit cards to maintain spending amid the cost of living crisis, official figures have revealed. Brits set aside £3.5bn in January in savings accounts, a slight increase from December, but below the pre-pandemic monthly average increase of [...]
More data points to UK economy avoiding recession but experts urge Hunt to prevent investment cliff edge at March budget March 1, 2023 The prospect of the UK avoiding a recession after a batch of better than expected recent data has propelled business confidence higher, a closely watched survey out today shows. Optimism among company leaders jumped 11 points to minus 17 this month, shifting it back to levels seen when the government launched Plan B measures to [...]
Kop of living crisis: Soaring bills hit Liverpool’s bottom line February 28, 2023 It seems that even the world’s richest football clubs are not immune to the cost of living crisis after soaring bills put a dent in Liverpool’s profits. The Premier League club achieved record revenues of £594m last season but turned a pre-tax profit of just £7.5m following a steep rise in matchday overheads. The return [...]
End of Bank of England £800bn bond buying scheme poses headaches for Treasury and taxpayers February 28, 2023 The magic money tree is shedding its leaves. Over a decade of cheap cash propping up the global economy has been toppled by a once in a generation inflation problem. QE was a necessary response to the batch of shocks ricocheting around the global economy since 2008. Now it’s shifted into reverse. But how did [...]
IFS: No room for tax cuts or spending rises at March budget despite Jeremy Hunt pocketing £60bn windfall February 28, 2023 There is no room for tax cuts or spending increases at the 15 March budget despite Jeremy Hunt being handed an around £60bn windfall from lower energy prices and interest rates, a top economic think tank has forecast today. The Chancellor will be held back from handing households and businesses a tax giveaway due to [...]
London to power UK economy away from recession and clinch best growth across the country February 27, 2023 London will power the UK economy out of recession and is poised to be the fastest growing area in the country over the coming years, new forecasts out today reveal. The capital’s economy is on track to expand 2.6 per cent each year between 2024 and 2026, pushing it to the top of the countrywide [...]