Budget 2015: Here are George Osborne’s best quotes plus his Budget speech in full March 18, 2015 George Osborne's final Budget during this parliament had few surprises but plenty of great quips, including – to the dismay of bookies everywhere – a quip about Ed Miliband's now-infamous second kitchen. Here's a selection of our favourites from today's big speech. (Source: Getty/City A.M.) (Source: Getty/City A.M) (Source: Getty/City A.M.) [...]
Bank of England minutes: Strong pound risks exacerbating deflation March 18, 2015 Bank of England policymakers think the strong pound could exacerbate the current period of low inflation. Minutes released today showed the monetary policy committee believes divergent monetary policy trends, and a strengthening economy, could cause the pound to appreciate further. "This has the potential to prolong the period for which consumer price inflation would remain [...]
Eurozone core inflation beats expectations, but the bloc is still in deflation March 17, 2015 It is hardly a time for unbridled celebration; the Eurozone remains in deflation at -0.3 per cent, but the core reading showed stronger than expected growth of 0.7 per cent year-on-year, compared to the 0.6 per cent analysts had been expecting. The data may lead to suggestions that Mario Draghi's quantitative easing (QE) programme is [...]
Carney rate rise comments sends sterling stumbling March 12, 2015 BANK of England governor Mark Carney yesterday said that low inflation outside of the UK, as well as a strong sterling, could cause the central bank to push back a rate hike. Sterling dropped on the comments – it fell by 0.5 per cent against the dollar yesterday to a low of $1.4850. It marks [...]
Bank of England governor Mark Carney says global deflation forces, strong sterling could delay rate hike March 12, 2015 Bank of England governor Mark Carney has said that low inflation outside of the UK, as well as a strong sterling, could cause the central bank to push back a rate hike. "It may be appropriate to take into account persistent external deflationary forces arising from the combination of continued foreign low inflation and the [...]
Backing the USA: Dollar climbs as investors buy into recovery March 11, 2015 Amid much talk of a US rate hike, Chris Papadopoullos asks if it will happen as quickly as some think The Federal Reserve has a way with words. Last year, it prompted mass market confusion by saying it would wait for a “considerable time” before hiking interest rates. In December, it ditched the term and [...]
Mark Carney says talk of cut to interest rate is overblown March 10, 2015 Bank of England governor Mark Carney yesterday implied that talks of a cut in interest rates nearer to zero were overblown. He also ruled out cancelling government debt held by the Bank to reduce the headline figure. Policy makers will “look through” falls in energy and food prices that would keep inflation below target this [...]
US non-farm payroll: Economy adds 295,000 jobs in February March 6, 2015 The US economy was inoculated from last month's bout of bad weather as jobs growth smashed expectations. Figures released by the Labour Department today showed that the US economy added 295,000 jobs in February, which was up from the 257,000 in January. This was above economists' forecasts of 240,000. This bumper figure pushed the dollar [...]
Low pay and inflation deter rate hike March 4, 2015 CITY A.M.’s panel of economists voted seven to two to hold the Bank of England’s base rate at 0.5 per cent this month. This week’s guest chair, former UK rate-setter David Blanchflower, highlighted the fact that the next move in interest rates could be a downward one. The Bank has said lowering rates is now possible [...]
Earnings finally return to their pre-crisis levels March 3, 2015 INCOMES have finally recovered to pre-recession levels, new research reveals today. Projections from the Institute for Fiscal Studies (IFS) suggest average median household income in the year to April 2015 (2014-15) is at around the same level it was in 2007-08, before the recession. The figures are adjusted for changes in the prices of goods [...]