UK now only rich country where inflation is rising despite Bank of England interest rate hikes July 4, 2023 Britain is now the only rich country where inflation is rising, signalling the Bank of England’s series of interest rate rises have been less effective than its peers’, new data out today shows. Inflation across the Group of Seven (G7) nations fell to 4.6 per cent in May, down from 5.4 per cent in April, [...]
Much like the UK economy, pound sterling suffers from a certainty deficit July 4, 2023 Barrelling around in the piping of the UK economy so far this year has been a sustained pound sterling rally. Britain’s currency in 2023 has been one of the best performers in the rich world. It is up nearly five per cent against the US dollar at $1.26, a far cry from the record low [...]
Higher interest rates tipped to accelerate UK house price decline in quiet week for City July 3, 2023 Higher interest rates are set to accelerate UK house prices’ decline, new figures in what will be a quiet week for markets are expected to reveal. Analysts at consultancy Oxford Economics reckon Halifax’s house price data on Friday will show they dropped 2.5 per cent over the last year and 0.1 per cent over the [...]
Exclusive: London businesses shake off UK economic doom and gloom July 3, 2023 London businesses are shaking off all the doom and gloom swirling around the UK economy and are poised to power the country’s recovery, exclusive research shared with City PM has found. The capital’s firms are standing up to rising costs and shaky consumer demand, but are still alive to inflationary threats, according to the London [...]
House price growth faces ‘significant drag’ from rate rises but London remains ‘buoyant’ June 30, 2023 House price growth may face “significant drag” from high interest rates as fresh figures show they remained relatively stable in June despite yearly growth being negative. The latest Nationwide House Price Index show house prices remained broadly flat in June, but down 2.5 per cent compared to last year, owing in part to 13 successive [...]
Bank of England chief economist Huw Pill admits forecasts have struggled to explain inflation shock June 29, 2023 Any central banker would have struggled to accurately forecast the impact of the series of shocks that have hit the UK economy, the Bank of England’s chief economist claimed today. Huw Pill, a former Goldman Sachs banker, in response to a letter from the Treasury select committee today hit back at critics who have slammed [...]
Budget Britain: Inflation forces families to trade down and opt for staycations June 28, 2023 Britons are trading down to cheaper products and are opting to holiday at home in response to rampant inflation and higher interest rates squeezing their budgets, new research out today shows. Some 40 per cent of families have been buying more value or own brand products in 2023, according to analysis from consultancy KPMG. The [...]
Bank of England’s Tenreyro warns more interest rate hikes risks pushing inflation below target June 27, 2023 A Bank of England official has said raising interest rates too aggressively could push inflation below the central bank’s target over the coming years. Departing monetary policy committee (MPC) member and professor at the London School of Economics Silvana Tenreyro today said tightening borrowing costs in an economy that is undergoing a severe external energy [...]
Let’s all hand our cash over to the Treasury to pay off UK’s £2.5 trillion debt pile (not) June 27, 2023 Here’s a fun fact. If everyone in the UK worked for a year and gave all their earnings to the Treasury, the government could nearly repay the country’s more than £2.5 trillion debt pile. Alright, that’s oversimplifying the equation. But it does illustrate a principle in economics that often gets lost in the deluge of [...]
Bank of England and Rishi Sunak fail to win over investors on inflation fight June 27, 2023 Investors are sweating over Britain’s inflation problem running out of control and the Bank of England being unable to solve it any time soon, exclusive research for City PM has revealed. More than a year of raging prices has eroded confidence in policymakers’ ability to ease the cost of living crisis. Some 56 per cent [...]
