D-Day in the City: Bank of England set to make history today by raising interest rates by record 50bps August 4, 2022 Today the Bank of England could make history by raising interest rates by 50bps for the first time since the Monetary Policy Committee was set up back in 1997. In June, the vote was a split decision, and it is quite likely that this one could be too. Then, three members of the MPC voted [...]
UK inflation to surge above 15 per cent, more than seven times Bank of England target August 4, 2022 The Bank of England faces the grim prospect of overseeing the largest inflation surge in recent memory, with prices rising more than seven times faster than its target, a top think tank warned today. A sustained surge in energy costs triggered by Russia’s invasion of Ukraine and a sudden burst in demand after the Covid-19 [...]
Sunak and Truss’s room for tax cuts is ‘limited’, OECD warns August 3, 2022 Tory leadership hopefuls Liz Truss and Rishi Sunak’s room to cut taxes is limited, a top global economic institution said today. The Organisation for Economic Co-operation and Development (OECD) said an ageing society and the need to boost public sector investment to lift growth will keep government spending higher for decades, limiting “the scope for [...]
Sheepish consumers deal blow to UK services economy August 3, 2022 Consumers cutting spending in response to a historic inflation surge has weighed on growth in the UK’s services economy, reveals a closely watched survey published today. Brits are being squeezed by soaring living costs eroding their incomes, prompting them to cut unnecessary spending to protect their finances. As a result, growth in the services industry [...]
Threat of stagflation returns for first time since 1970s as UK enters early stage of drawn-out recession August 3, 2022 The UK is in the early stages of a drawn out recession that will tip millions of households into financial crisis, reveals fresh forecasts published today. An inflation surge driven by an unprecedented rise in energy bills will steer the economy into recession this quarter and keep it there until early months of next year, [...]
Poundland to open 25 UK stores this year as low-price giant exploits Brits’ hunger for cheaper products August 3, 2022 Poundland said this morning it plans to open and relocate 25 stores across the country in 2022. Ten new branches will be opened by the end of next month and 15 more before the year ends. The low-price retailer said it will primarily focus on high streets, retail parks, and neighbourhoods, with stores expected to [...]
Bank of England to rip up history books at this week’s rate decision August 3, 2022 Soaring inflation will force the Bank of England to do something it has never done since it was made independent 25 years ago, City economists are betting. Governor Andrew Bailey and the rest of the monetary policy committee (MPC) will hike interest rates 50 basis points this Thursday. The move would also mark the sixth [...]
Direct Line Insurance reports lower profit amid rising inflation and uncertain economic conditions August 2, 2022 Direct Line Insurance Group reported lower profits for the first half of 2022 as rising inflation and a gloomy market outlook impacted performance. The insurance company had a 47 per cent drop in operating profit to £195.5m from the first half of 2021 as it dealt with “challenging” market conditions and tighter FCA regulations. Profit [...]
London markets lose early gains despite UK banks’ best efforts August 1, 2022 A bumper crop of results from Britain’s largest lender and Asia-focused HSBC initially boosted London markets today, before an afternoon collapse. The capital’s premier FTSE 100 index dropped 0.13 per cent to 7,413.42 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, added 0.22 per [...]
Brits scale down inflation expectations in sign BoE rate hikes are quashing price pressures August 1, 2022 British households are scaling down their expectations for future inflation in a sign that the Bank of England’s series of rate hikes are curbing price pressures, a fresh survey published today revealed. The UK public in July thought inflation will settle at 3.8 per cent in five years, down from four per cent in June, according [...]