Bank of England’s Andy Haldane says “no rush” to hike interest rates July 29, 2015 The Bank of England's chief economist Andy Haldane has said that there's "no rush" to raise interest rates, as some members of the monetary policy committee appear to be gearing up to vote for a rise next month. Haldane argued that the economy is still healing from the financial crisis, inflation remains extremely low and global risks [...]
Pound jumps as UK economy grows 0.7 per cent in the second quarter July 29, 2015 The pound jumped against the dollar as data showed Britain's economic recovery picked up pace in the second quarter of this year. Read more: These charts show just how dependent UK growth is on London The Office for National Statistics (ONS) said the economy grew by 0.7 per cent between April and June, from 0.4 per [...]
UK consumer confidence hits the high notes as interest rate rise looms July 28, 2015 British shoppers are at their most confident since September, new survey figures reveal this morning. The consumer confidence index published by YouGov and the Centre for Economics and Business Research (CEBR) climbed to a score of 114 in July. Consumers are most optimistic on their job security, business activity and house values. However, there has [...]
With GDP per head back at pre-crisis levels, should the Bank raise interest rates now? July 28, 2015 James Sproule, chief economist at the Institute of Directors, says Yes Inflation may be hovering around zero, but that is no reason for the Bank of England to hold interest rates. An economy with quarterly GDP growth of 0.7 per cent, unemployment at 5.6 per cent and real wage growth of around 3 per cent [...]
Moody’s says homeowners can cope with higher interest rates July 26, 2015 The majority of British homeowners could comfortably cope with a moderate rise in interest rates, Moody’s has said this morning. Only about one per cent of borrowers would be unable to cover mortgage payments and meet their living expenses if interest rates rose by one per cent from their historic low of 0.5 per cent, [...]
Interest rate rise by the Bank of England is the “greatest risk” to house prices July 24, 2015 House price growth for this year is on track to hit double-digit figures in a number of cities across Britain – providing the Bank of England doesn't hike interest rates anytime soon. House prices in the 20 cities monitored by Hometrack's cities house price index rose 6.3 per cent in the first half of 2015, and look set [...]
Interest rates could take off early as policy makers change tone: Will 2015 see the first hike since 2007? July 22, 2015 In April this year, Mark Carney became the first Bank of England governor to see deflation in Britain since Lord Cameron Fromanteel Cobbold experienced a bout of falling prices in 1960. But despite inflation undershooting its two per cent target by such a wide margin, Carney is preparing markets for a rate hike this [...]
Are interest rates about to rise? Don’t bank on it yet July 22, 2015 Bank of England governor Mark Carney has set the cat among the pigeons with his recent comments on interest rate rises. From the media response, one could infer that a rate rise is just around the corner and a done deal. My response is hold on, not so fast. For the first time since the [...]
Institute of Directors: Bank of England must raise interest rates now or risk being defenceless during the next crisis July 22, 2015 The Institute of Directors (IoD) has urged the Bank of England's monetary policy committee (MPC) to start raising the interest rate "now" or risk being "defenceless" when the next financial crisis comes. Read more: Pound jumps as Bank of England moves closer to rate hike In a statement released after yet another decision to hold rates [...]
Pound jumps as Bank of England rate-setters vote unanimously to keep rates on hold in July July 22, 2015 The pound rose 0.45 per cent against the dollar to $1.5624 this morning after members of the Bank of England's monetary policy committee (MPC) struck a more hawkish tone in minutes of a meeting published today. While all nine members voted to hold interest rates at a record low 0.5 per cent at its meeting [...]