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Interest rates
UK economy growing faster than expected: flash PMI
A closely-watched survey revealed that the UK private sector's economy grew faster than expected, and inflation dropped to its lowest level in three and a half years this month. This "welcoming" picture for Labour is a welcome one,…
UK wages growth slowest in two years
The Bank of England is debating whether or not to reduce interest rates in the next month. This slowdown in wage growth in Britain in May was the lowest in almost two years.
According to official figures, the average weekly income,…
The pound rises after the hopes of a rate cut recede
The pound reached a new high against the US dollar, as traders re-wrote their bets about a rate cut by the Bank of England in the next month.
The pound rose 0.45 percent against the dollar, to $1.30. This is the highest level since July…
MPC member urges MPC to cut interest rates in order to reduce living costs
One of Bank of England’s doveish rate-setters called for interest rates to be cut in order to reduce the cost of living, and because inflation is on a “firm downward trajectory”.
Swati Dhingra is an external member on the monetary…
Bank of England economist dashes hopes of interest rate cuts
The chief economist of Bank of England has warned that key inflation measures remain "uncomfortably" high. This is a blow to the hopes of households for a rate cut.
Huw Pill, a member of Threadneedle Street’s monetary committee (MPC),…
Investors aiming for rate cuts flood cash into shares
Investors in Britain are anticipating a possible cut in interest rates, and have poured money into equity funds faster than ever before.
Calastone's latest data on funds flows shows that over £11 billion has been invested in equity funds…
UK interest rates at 16-year highest of 5.25%
Andrew Bailey, the Bank of England's deputy governor, said that it was important to keep interest rates low in order to maintain a low inflation rate.
The monetary committee voted by 7-2 to freeze the base rate of 5.25 percent, which is…
Bank of England to keep interest rates at 16 year high
Bank of England will likely leave interest rates unchanged for the seventh consecutive time at its Thursday meeting, despite the fact that inflation has returned to the UK official target for nearly three years.
At midday, the central…
Spending on food, clothes and take-out is down for consumers
Even though inflation is down to 2% this year, consumers are still cutting back on their non-essential purchases, including eating out, buying takeaway food and clothes.
KPMG's latest figures show that after two years of rising prices…
Rachel Reeves warns Bank of England against changing the way it pays interest on reserve funds
Rachel Reeves, the shadow chancellor of England, has warned of "the dangers" of changing the way the Bank of England pays commercial lenders interest on their deposits. She has thrown cold water on a proposal that some economists had said…
Tax increases are inevitable because of the losses from quantitative easement
Goldman Sachs warned that tax increases are "inevitable", as the legacy of quantitative ease from the Bank of England will be felt after the elections.
The American Investment Bank has stated that the losses from the quantitative easing…
European Central Bank reduces interest rates for the first time in five years
The European Central Bank cut interest rates, for the first in nearly five years. However, future cuts will depend on whether or not price pressures continue to ease.
The quarter-point reduction to 3.75 percent on Thursday, which was not…
Bank of England deputy says that a UK interest rate reduction is “possible” this summer
The Bank of England's departing deputy governor hinted on Monday that UK interest rates may be reduced this summer. This would add to the expectation of a first cut in borrowing costs as early as next month.
Ben Broadbent said the Bank's…
Bank of England announces summer rate cut while keeping rates at 5.25%
The Bank of England has indicated that it will cut rates if the inflation rate remains low this summer, even though it is keeping borrowing costs at their highest level in 16 years of 5.25 percent.
Andrew Bailey, Governor, said on…
FTSE 100 closes on record high after sterling falls
The FTSE 100 reached a new high on Monday, as the rising expectation of UK interest rate reductions weakened sterling. This also boosted London corporate valuations.
The blue-chip index in Britain rose by 1.6 percent to 8,023.9,…
Bank of England raises alarm over private equity sector
Bank of England warns that mounting pressure on the £6.5 trillion (£6.5 billion) private equity sector could lead to a crunch, which would cause banks to suffer large losses and trigger a crisis in the real economy.
Regulators are…
Thames Water bondholder warns that creditor losses may deter investment to the UK
Nationalising Thames Water will discourage investment in UK infrastructure. This is the warning of a major bondholder.
Royal London Asset Management's senior fund manager said that taking the heavily-indebted water company under public…
Gold reaches record high of 2,353 dollars on conflict and rate-cut hopes
Gold prices hit a record high of $2,353 an ounce Monday morning, before slipping back to around $2,336. Geopolitical tensions and central bank purchases, as well as the looming rate cuts, fueled demand for gold.
Interest rate swaps…