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UK Interest Rates

  • UK inflation leaps to 10.4 per cent smashing Bank of England and City forecasts

    March 22, 2023

    UK inflation has surpassed forecasts and stayed in the double digits, in a sign the Bank of England will need to keep hiking interest rates to tame prices, official figures out today reveal. The rate of price increases jumped to 10.4 per cent in February, up from 10.1 per cent in January, according to the [...]

  • Nearly every sector of UK economy powers away from feared recession

    March 22, 2023

    Nearly every sector of the UK economy is powering away from a recession that was much-tipped at the turn of the year, a new survey out today shows. Some 11 of the 14 sectors monitored by Lloyds Bank are producing more than they did a month ago, the highest number in nearly a year. The [...]

  • Hunt must commit Treasury and BoE to review of rate rise impact, Labour shadow City minister urges

    March 21, 2023

    Chancellor Jeremy Hunt has been urged to commit the Treasury and the Bank of England to a review of “sharp interest rate rises” in light of the ongoing banking turmoil. Shockwaves have rocked the financial sector in the past weeks with the collapse of the US arm of tech bank SVB – plus the buyout [...]

  • European markets to open higher after Credit Suisse drama as investors split on central bank rate hikes

    March 21, 2023

    European markets are set to open higher on Tuesday as investors bet that banking turmoil will put a halt to central banks’ battle to contain inflation The FTSE and Frankfurt’s DAX were called up 0.59 per cent while the CAC in Paris was called up 0.47 per cent.  After the drama of the past few [...]

  • Budget: OBR says UK to avoid recession and is on course to grow every year after short blip in boost for Jeremy Hunt

    March 15, 2023

    Britain will avoid a much-tipped recession this year and will grow every year until 2027 after a short blip, a massive reversal from economists warning of the longest contraction in a century just a few months ago, the country’s spending watchdog said today. UK GDP is on course to suffer a mild slump in 2023 [...]

  • Why does the Bank of England (secretly) want to sack you? To hose down the inflation fire

    March 14, 2023

    Whisper it very, very softly, but the Bank of England (secretly) is trying to force you out of the job. That’s right. Governor Andrew Bailey wants to toss you to the wolves in the name of the fight against inflation. That’s overegging it. No one is directly trying to make someone else unemployed. A kernel [...]

  • UK pay on track to trail inflation for 15th month in a row as cost of living crisis bites

    March 13, 2023

    Wages are on track to trail inflation for the 15th month in a row, underscoring how much pressure the cost of living crisis is piling onto household finances, official figures out on Tuesday are expected to show. Regular pay growth is projected to trim to 6.6 per cent over the three months to February, down [...]

  • If you can’t afford your mortgage: What the FCA’s lender guidance means for borrowers

    March 10, 2023

    Successive interest rate rises are increasing mortgage costs for millions of borrowers, according to both regulators, lenders and advisers. One of the main City watchdog shas estimated an extra 356,000 mortgage borrowers could face payment difficulties by the end of June 2024, in addition to those who are already behind. The Financial Conduct Authority has issued final [...]

  • UK economy ‘bounces back’ in another signal a recession is off the table but experts warn of stagnation

    March 10, 2023

    The UK economy “bounced back” from a sharp contraction over Christmas and is holding up better than feared in another sign the country could avoid a recession, official figures out today show. Gross domestic product (GDP) jumped 0.3 per cent in January, better than the consensus forecast of 0.1 per cent growth, according to the [...]

  • 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 [...]

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