UK Economics Correspondent, London
Andy's Feed
Mar 12, 2015

Sterling strength could keep UK inflation low: BoE’s Carney

LONDON (Reuters) – Bank of England Governor Mark Carney signaled on Thursday he was in no rush to raise interest rates, saying the impact of sterling’s rise and low global inflation could last for some time.

Carney said the Bank expected to make limited and gradual increases in rates over the next three years as inflation returned to target within two years, even though it fell to 0.3 percent in January.

Mar 12, 2015

Sterling strength could keep UK inflation low – Carney

LONDON (Reuters) – Bank of England Governor Mark Carney signalled on Thursday he was in no rush to raise interest rates, saying the impact of sterling’s rise and low global inflation could last for some time.

Carney said the Bank expected to make limited and gradual increases in rates over the next three years as inflation returned to target within two years, even though it fell to 0.3 percent in January.

Mar 5, 2015

Bank of England keeps rates on hold, six years after crisis cut

LONDON (Reuters) – The Bank of England marked the sixth anniversary of the introduction of its lowest ever interest rate by standing pat once again on Thursday, but an improving economy suggests rates are likely to rise at some point over the next 12 months.

While no economist polled by Reuters expects the Monetary Policy Committee to raise rates before a May 7 national election, given Britain’s record low inflation, there are signs that policymakers believe a rate hike could come sooner than markets believe.

Mar 5, 2015

Bank of England keeps rates on hold

LONDON (Reuters) – The Bank of England marked the sixth anniversary of the introduction of its lowest ever interest rate by standing pat once again on Thursday, but an improving economy suggests rates are likely to rise at some point over the next 12 months.

While no economist polled by Reuters expects the Monetary Policy Committee to raise rates before a May 7 national election, given Britain’s record low inflation, there are signs that policymakers believe a rate hike could come sooner than markets believe.

Feb 27, 2015

Sterling steadies after hitting 7-year high vs euro

LONDON, Feb 27 (Reuters) – Sterling steadied on Friday after
a rollercoaster week which has seen it scale seven-year highs
against the euro even as doubts appear over how much more it can
gain ahead of a potentially unsettling election in May.

Helped by an afternoon recovery in Europe for the euro
against the dollar, the pound bounced back from lows below $1.54
hit in early trade. It also inched up 0.12 percent to 72.54
pence per euro, its strongest since the end of 2007
but only 3 hundredths of a pence above Thursday’s high.

Feb 25, 2015

Ireland open to idea of growth-linked bonds for Greece

LONDON (Reuters) – Ireland has no problem in principle with the idea of swapping Greece’s official debt for growth-linked bonds but would have to see the details of any proposal, Finance Minister Michael Noonan said on Wednesday.

Euro zone finance ministers agreed on Tuesday to a four-month extension of Greece’s EU/IMF bailout program, subject to its economic plans being approved in detail with discussions set to start immediately on filling the state’s funding gap.

Feb 17, 2015

British inflation hits record low, gives consumers pre-election boost

LONDON (Reuters) – British consumer price inflation eased last month to its lowest level since records began in 1989 and looks set to slow further, lifting voters’ disposable incomes as national elections approach.

Annual CPI fell to 0.3 percent in January, Tuesday’s official figures showed, as expected in a Reuters poll, from 0.5 percent in December.

Feb 13, 2015
Feb 12, 2015
via MacroScope

RIP forward guidance (2013 – 2015)

Today marked the first time since its launch that forward guidance wasn’t mentioned by the Bank of England in its quarterly inflation report, or by Governor Mark Carney in his opening remarks.

Feb 11, 2015