Reeves: Latest interest rate hike is a ‘hammer blow’ which did not need to happen August 4, 2023 Shadow chancellor Rachel Reeves has labelled the latest rise in interest rates as a “hammer blow for working people” which did not need to happen. The Bank of England raised the base rate for the 14th time in a row on Thursday, taking it to 5.25% in a bid to bring inflation under control. The [...]
Bank of England finally administers bitter medicine to treat inflation August 4, 2023 The City has been ahead of the Bank of England’s thinking for some time. Economists have for months known interest rates are set to stay higher for longer. Most expect them to peak at 5.75 per cent and stay there for, probably, at least a year. Governor Andrew Bailey and co have woken up to [...]
Bank of England interest rate decision today on a knife edge, City economists predict August 3, 2023 As the City gears up for what everyone expects to be the Bank of England’s 14th straight interest rate rise at midday today, economists are split over how much more pain they think the group of rate setters will heap on the UK economy. Are the Monetary Policy Committee (MPC) poised to meet market expectations [...]
Are central banks to blame for the inflation crisis? August 1, 2023 As we enter what looks like the final leg of central banks’ interest rate rising journeys, it’s as good a time as ever to trace why they have been jolted into action after over a decade of ultra loose policy and whether their response to the inflation crisis has been effective. Coming out of the [...]
Tighter interest rates and inflation clobber UK business confidence August 1, 2023 Higher interest rates and elevated prices have thrown a wet blanket over UK business optimism, according to surveys out today. Confidence as measured by the lobby group the Institute of Directors (IoD) was largely unchanged last month at minus 30 points, up marginally from June’s minus 31 point reading. It solidifies signs that pessimism is [...]
Bank of England interest rate rises yet to pass fully through economy as borrowing ticks up July 31, 2023 The effects of the Bank of England’s aggressive interest rate rises have yet to fully feed through the UK economy as Brits continue to borrow and look to get on the property ladder, official data out today shows. A clutch of numbers released by the Bank of England today revealed consumers are not yet being [...]
UK private economy wilts amid high inflation and interest rates, CBI survey shows July 31, 2023 Britain’s private sector economy is being trapped by high inflation and elevated interest rates and companies fear growth will continue to contract, a new survey out today shows. Research by the lobby group the Confederation of British Industry (CBI) has found that activity across the private sector – which generates most output in the UK [...]
Bank of England to hike interest rates for 14th time in a row to 2008 high of 5.25 per cent July 31, 2023 The Bank of England this week is tipped to hike interest rates for the 14th time in a row as it extends its fight against roaring inflation. Members of the nine-strong monetary policy committee (MPC) are expected on Thursday to back a 25 basis point increase to the UK’s official interest rate, which would send [...]
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 [...]