Historic inflation surge to swell UK debt interest bill to over £200bn August 18, 2022 A historic inflation surge is set to swell the UK’s debt interest bill to over £200bn, top economists have warned today. Britain’s public purse is set to come under intense pressure over the next two years that may cause the government to miss their borrowing fiscal rule, according to the Institute for Fiscal Studies (IFS). [...]
Bank of England to launch another jumbo rate hike to tame over 10 per cent inflation August 17, 2022 The Bank of England is set to launch a series of jumbo rate hikes to tame inflation that is beginning to be driven by domestic factors, City economists warned today. Prices climbed 10.1 per cent annually in July, the fastest acceleration since February 1982 and much higher than the Bank and analysts’ forecasts, according to [...]
Inflation overshoot spooks investors as FTSE 100 house builders tumble August 17, 2022 London markets were shaken today by concerns that inflation is firming in the UK as housebuilders suffered heavy losses on the prospect of more rate hikes. The capital’s premier FTSE 100 index dropped 0.27 per cent lower to 7,515.75 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of [...]
Bank of England’s recession warning hits UK consumer confidence August 17, 2022 Fears of a protracted recession as long as the one caused by the financial crisis is weighing on Brits’ optimism, a new survey released today showed. Consumer confidence dipped four points at the beginning of August, according to Bank of America. “Confidence remains weak, consistent with recession, and all components worsened,” the Wall Street giant [...]
Number of company administrations set to rise this year, analysts predict August 16, 2022 More UK companies are set to enter administration this year than last year, analysts have warned. Risk consultancy Kroll said yesterday that it predicted that the UK could face up to 895 company administrations in 2022, compared to just 659 in 2021. So far there have been 522 administrations this year, with an average of [...]
Over half of money managers bet on global recession this year August 16, 2022 Over half of investors are fretting over the global economy tumbling into recession this year, new figures released today show. Some 58 per cent of money managers think global output will shift into reverse, up from a minority of 47 per cent, according to Bank of America’s latest global fund managers’ survey. The latest reading [...]
Mortgage transactions predicted to drop six per cent in 2022 due to interest rate hikes August 16, 2022 Mortgage activity is set to drop six per cent in 2022 as rising inflation and interest rates put pressure on potential homeowners. Brokers Henry Dannell published figures this week showing the housing market had crashed from the highs of 2021, with interest rates putting off new buyers. Figures precept mortgage activity to contract by six [...]
Inflation deals record blow to UK workers’ living standards August 16, 2022 Surging inflation has dealt a record blow to households’ wages in a sign the UK economy is tumbling into a sharp slowdown, official figures published today showed. Brits’ pay accounting for consumer price index inflation dropped 4.1 per cent over the last three months, the biggest drop since records began in 2001, according to the [...]
Identifying politicians’ role in inflation surge is better than tweaking BoE mandate August 15, 2022 Understanding how much of the blame politicians should carry for inflation surging far above the Bank of England’s two per cent target would be “a better strategy” than tweaking its mandate, a top City economist said today. In a note, Paul Donovan, chief economist at investment bank UBS, said the UK’s inflation shock has been [...]
House prices continue to climb in nightmare scenario for first-time buyers even though buyer interest is slowing August 15, 2022 House prices continue to move firmly upwards and are still expected to be higher in a year’s time, according to the Royal Institution of Chartered Surveyors (RICS) this afternoon. The numbers are somewhat surprising given that surveyors have seen the longest stretch of shrinking buyer demand in the housing market since the early stages of [...]