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UK Interest Rates

  • FTSE 100 close: Inflation shock drags London index lower as real estate firms lead losses

    April 19, 2023

    London’s FTSE 100 slipped today as investors took fright at UK inflation topping forecasts to stay in the double digits last month. The capital’s premier index shed 0.13 per cent to drop to 7,898.78 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, fell 0.49 [...]

  • Will inflation ever fall back below 10 per cent? Yes, but we’ve been wrong before

    April 19, 2023

    We find ourselves in the same situation again. UK inflation has topped the City and Bank of England’s expectations, hanging in the double digits in March at 10.1 per cent. The forecast was for it to slip to 9.8 per cent. Families and businesses will be forgiven for worrying whether it will ever fall back [...]

  • Bank of England to hike interest rates to five per cent after inflation tops forecasts to stay in double digits

    April 19, 2023

    UK inflation has smashed expectations to stick in the double digits, in a sign that the cost of living crisis is still gripping families and businesses across the country, prompting markets to bet the Bank of England will hike interest rates to five per cent. The rate of price increases trimmed to 10.1 per cent [...]

  • Inflation sliding and tough Bank of England means the pound will see better days

    April 18, 2023

    “Hope is not a strategy,” Jordan Rochester, a wonk at Japanese investment bank Nomura, said last September, referring to politicians’ attempts to revive the pound after it plummeted to its lowest level ever against the US dollar following Liz Truss’s tax cutting mini budget. A lot has changed since then. Chancellor Jeremy Hunt raised taxes [...]

  • Bank of England to shun interest rate hike for first time since November 2021 next month

    April 18, 2023

    The Bank of England will keep interest rates unchanged at its next meeting on 11 May, marking the first time the central bank has not hiked borrowing costs since November 2021, a new survey out yesterday predicted. According to a survey by Bloomberg, more than half of City economists suspect Governor Andrew Bailey and the [...]

  • FTSE finance chiefs ditch UK recession bets as confidence rebounds sharply

    April 17, 2023

    Money managers at Britain’s biggest companies have signalled a sharp increase in confidence in the UK economy, a closely watched survey out today shows, in a further sign the country is on course to dodge a recession. Chief financial officers of top UK corporates notched a net positive 25 per cent confidence rating in Deloitte’s [...]

  • Bank of England won’t cut interest rates until Christmas but UK to avoid recession

    April 17, 2023

    The Bank of England is poised to cut interest rates at Christmas, lured into the decision by inflation falling rapidly over the course of this year, new forecasts that also say the UK will dodge a recession out today claim. Governor Andrew Bailey and his team of economists are tipped to launch the first rate [...]

  • Britain still at risk of ‘mild recession’ despite better than feared start to year, Lloyds Bank chief predicts

    April 16, 2023

    Britain could still suffer “a mild recession” despite the economy performing much better than experts warned at the turn of the year, the head of Lloyds Bank, the country’s largest mortgage lender, has said. Charlie Nunn, chief executive of Lloyds Bank, told The Sunday Times that there is a “more positive outlook” about the UK [...]

  • UK inflation poised to slip out of the double digits for first time since last summer

    April 16, 2023

    UK inflation is poised to slip out of the double digits for the first time since last summer in what could be the beginning of the cost of living crisis gradually releasing its grip on families over the rest of the year. Official figures from the Office for National Statistics (ONS) on Wednesday are expected [...]

  • Unemployment must be higher to keep a lid on inflation, Bank of England’s Huw Pill claims

    April 13, 2023

    A greater proportion of the UK population than before the recent series of economic shocks may need to be unemployed in order to keep a lid on inflation, the Bank of England’s chief economist has claimed today. Huw Pill, who succeeded Andy Haldane as the Bank’s top wonk, was speaking at an event hosted by [...]

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