Recession to be more than twice as bad as first feared, forecasters warn January 23, 2023 The much touted coming recession in Britain will be twice as bad as first feared, new forecasts out today reveal. Soaring prices coupled with the Bank of England’s efforts to tame them are set to deal a heavier blow to GDP than projected just a few months ago. According to the EY Item Club, the [...]
Rishi Sunak and Jeremy Hunt to shun tax cuts in March budget despite £11bn energy windfall January 23, 2023 Jeremy Hunt and Rishi Sunak will hold fire on tax cuts at the 15 March budget despite being handed an around £11bn windfall from international energy prices falling to pre-Russia-Ukraine war levels, according to top economists’ predictions gathered by City A.M. Brits will have to wait until the run up to the next general election, [...]
Recession risks return as Brits brace for cost of living crisis to make 2023 a ‘bumpy ride’ January 20, 2023 UK consumer confidence dipped for the first time in two months in January, raising the risk the economy will slip into recession after all despite a string of better than expected data recently, a closely watched survey out today reveals. A credit card debt hangover from the Christmas spending splurge and energy bills looming has [...]
Andrew Bailey hints Bank of England is close to ending interest rate hike cycle January 19, 2023 Andrew Bailey has hinted that the Bank of England will stop hiking interest rates soon in an interview today. Speaking to Business Live, the governor of the Bank suggested market expectations of rates peaking at around 4.5 per cent is more in line with the central bank’s own thinking. Though Bailey, 63, said he is [...]
FTSE 100 close: Ocado emerges as top dog in 2023 so far, but index pulls away from record high January 18, 2023 London’s FTSE 100 finished slightly lower today, dragging it further away from its record and signalling traders are looking through signs UK inflation has passed its peak and could be a downward trend this year. The capital’s premier index dropped 0.27 per cent lower to 7,830.71 points, while the domestically-focused mid-cap FTSE 250 index, which [...]
City analysts betting on Bank of England interest rate cuts by early 2024 – as long as inflation falls quickly January 18, 2023 The Bank of England could cut interest rates as soon as early next year if inflation continues to tumble in 2023, top City analysts have predicted. The rate of price increases is forecast to more than halve which would bring inflation to below five per cent by the end of 2023, according to forecasts from [...]
Inflation drops for second month in a row but experts warn rate has yet to pass its peak January 18, 2023 UK inflation has fallen for the second month in a row, but soaring food prices have led some experts to warn it may not have passed its peak yet. The rate of price increases dropped to 10.5 per cent in December, down from 10.7 per cent in the previous month, the Office for National Statistics [...]
Brits’ take home pay still falling rapidly despite record wage rises January 17, 2023 Brits are suffering one of the sharpest hits to their take home pay despite businesses handing workers bumper pay prices, official figures out today reveal. Real pay tumbled 2.6 per cent over the three months to November, among the steepest drops seen outside the Covid-19 crisis, according to the Office for National Statistics (ONS). The [...]
To withstand future recessions, the UK needs radical supply side reform January 17, 2023 When academics write essays, they begin with an abstract that captures the causes, effects and outcomes of the economic policy change they are examining. Boosting the supply side has a pretty simple argument. Either increasing the volume or productivity of resources used to produce things makes a country richer. That’s it. Let’s take a look [...]
UK to shake off mild recession by end of this year, City analyst predicts January 16, 2023 The UK economy will experience a very mild recession and could be out of it by the end of this year, a top City economist has forecast. International energy prices have marched back down the steep hill they climbed after Russian president Vladimir Putin sent troops into Ukraine in February last year. On some measures, [...]