Bank of England chief economist warns of ‘significant’ response to market turmoil September 27, 2022 The Bank of England’s chief economist today rushed to calm the City by promising a “significant” response to the UK market turmoil. Huw Pill said it is hard “not to conclude” the Bank must hike interest rates steeply at its next meeting on 3 November after markets were rocked by chancellor Kwasi Kwarteng’s tax cuts and [...]
IMF “monitoring developments” in UK after currency fall and mini-budget September 27, 2022 The International Monetary Fund gave Kwasi Kwarteng and Liz Truss a slap on the wrist this evening, with a spokesman saying it did not “recommend large and untargeted fiscal packages” amid inflation concerns. The warning from the IMF comes after another day of currency fluctuations, triggered by a so-called ‘mini budget’ of tax cuts announced [...]
London’s FTSE 100 dragged down by house builders as more rate hikes loom September 27, 2022 London’s FTSE 100 fell today driven lower by house builders tumbling on the prospect of higher interest rates. The capital’s premier index lost 0.52 per cent to drop to below 7,000 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, tumbled 2.36 per cent to [...]
House prices may tumble a fifth if Bank of England hikes rates steeply, economists warn September 27, 2022 House prices could tumble as much as 21 per cent if the Bank of England is forced to hike interest rates steeply in response to the government’s tax and borrowing splurge fuelling inflation, City economists have warned. Mortgage affordability – the ratio of a home purchase loan to the size of the borrower’s income – [...]
Competition does not mean ‘regulatory race to the bottom’, banking watchdog warns September 27, 2022 The UK’s banking watchdog warned it will not engage in a “regulatory race to the bottom” today as Liz Truss and Kwasi Kwarteng prepare to shake up UK financial rules in a bid to boost growth.
Kwarteng tells City bosses that ‘we are committed to fiscal discipline’ September 27, 2022 Kwasi Kwarteng has told a group of City bosses today that the government is committed to “fiscal discipline” as the chancellor tries to calm markets and reassure the Square Mile. Kwarteng told them that “we are confident in our long-term strategy to drive economic growth through tax cuts and supply side reform”, and that he [...]
The benefits of CBDCs, and designing a system that delivers them September 27, 2022 by Martin Hargreaves, Chief Product Officer at Quant, examines how CBDCs offer significant benefits over traditional payment mechanisms.
Sterling crash: Plenty of blame to go round but much of it falls on the Bank September 27, 2022 The British economy has been through a lot in recent years but a full-scale currency crisis still wins points for novelty. But for all the sound and fury of yesterday’s market movements and the so-called sterling crash, the panic is overdone. Much of the blame for yesterday’s excitement lies, rightly, with the government. This newspaper [...]
Mortgage lenders withdraw some products after mini-budget market turmoil September 27, 2022 By PA Banks and building societies are withdrawing some of their mortgages from sale after the Government’s mini-budget on Friday sparked massive market turmoil. Three lenders have so far withdrawn some of their products amid the uncertainty. Virgin Money said: “Given market conditions we have temporarily withdrawn Virgin Money mortgage products for new business customers. [...]
London’s FTSE 100 squeezes out gain as house builders tumble September 26, 2022 London’s FTSE 100 squeezed out a small gain today despite investors ditching house builders in response to the Bank of England signalling it will hike interest rates sharply. The capital’s premier index edged 0.03 per cent higher to below the 7,020.95 points, while the domestically-focused mid-cap FTSE 250, which is more aligned with the health [...]