More rate hikes are coming, Bank of England official warns May 12, 2022 More rate hikes are on the way this year as the Bank of England continues to wrestle with a historic inflation crunch, a senior official at the monetary authority has said. Sir Dave Ramsden, a member of the Bank’s monetary policy committee, told households to brace for higher borrowing costs despite new figures released today [...]
Recession dials flash red on UK economic dashboard May 11, 2022 The dials are flashing red on the dashboard of the health of the British economy. Just a few months ago, UK growth prospects were reasonably good. The Covid-19 bounce back was set to continue this year, building on the country notching the biggest expansion in the G7 in 2021 (albeit due to the UK suffering [...]
Goldman Sachs: World is entering new era of ‘bigger government’ and ‘higher taxes’ May 11, 2022 The world economy is entering an era of “bigger government” and “higher taxes,” according to a top Wall Street bank. The scaling back of red tape and stronger corporate profits that characterised the global business environment since the 1980s is set to reverse, Goldman Sachs has said. Supply-side reforms pushed through by former British prime [...]
The Queen’s Speech failed to turn our financial regulators into a public asset May 11, 2022 The most important segment of yesterday’s Queen’s Speech was the landmark Financial Services Bill. This piece of legislation was a major test for the government’s vision of a net-zero aligned financial system that drives sustainable economic growth across the UK and acts in the interest of all people and communities. Regrettably, it didn’t pass the [...]
A slip into recession is a token of the Conservatives’ failure to govern our country May 11, 2022 The word recession has not been thought about for years, but after the Bank of England announced that we should expect it by the end of 2022, it has been placed at the front of people’s minds. Of course, external factors do play a massive role in this; the Russian invasion of Ukraine has disrupted [...]
UK recession lurks around corner as thousands face extreme poverty without more support May 11, 2022 A recession in the UK is just around the corner and the economy will stay in the doldrums without a major policy overhaul, a top think tank warned today. Britain’s economy will contract in the third and fourth quarters of this year, meeting the grade for a technical recession, the National Institute of Economic and [...]
Cost of borrowing surges as overdraft rates hit record highs: Credit card fees back to the ’90s May 10, 2022 Data covering quoted household interest rates on consumer credit products released by the Bank of England this week reveal the rising cost of borrowing for UK households, With the Bank hiking interest rates by 0.25bp last Thursday and inflation expected to show a climb yet again for April, the fresh data demonstrates the difficult decisions [...]
US-UK trade deal ‘never going to happen’, warns former Bank of England bigwig as he says high inflation is down to Brexit May 10, 2022 Most of the UK’s inflation is a direct result of Brexit, according to a former heavyweight at the Bank of England. Former BoE policymaker Adam Posen, said that around 80 per cent of the reason why the IMF expects UK’s inflation to remain high is directly linked to Britain’s departure from the EU. The economist, [...]
Concoction of risks trigger global sell off to kick start week May 9, 2022 A ratcheting up in anxieties over the possibility of the global economy hurtling toward a sharp slowdown wiped billions off the value of the world’s top companies today. London’s FTSE 100 index plunged 2.32 per cent to points, while the domestically-focused mid-cap FTSE 250 index tumbled 2.59 per cent. Investors ditched London stocks on the [...]
The City View: Analysing the G7 plan to phase out Russian oil May 9, 2022 Today Andy Silvester talks to City A.M. reporters Nicholas Earl and Leah Montebello. They go through the G7’s decision to phase out Russian oil, historically elevated gas prices, unpick Snapchat owner Snap Inc.’s plan to compete with the likes of TikTok, and break down Uber’s CEO Dara Khosrowshahi’s recent letter to employees. And in the [...]