UK Economics Correspondent, London
Andy's Feed
Jul 16, 2015

BoE’s Carney: rate hike decision to come into “sharper relief” by year’s end

LONDON, July 16 (Reuters) – Bank of England Governor Mark
Carney said on Thursday the decision to raise interest rates
from record lows would come into “sharper relief” around the end
of this year as inflationary pressures become clearer.

Carney reiterated that any rise in the benchmark interest
rate from its current 0.5 percent would be gradual and to levels
about half as high as historical averages of around 4.5 percent.

Jul 15, 2015

UK jobless rate rises for first time in two years, average earnings increase

LONDON, July 15 (Reuters) – Britain’s unemployment rate rose
for the first time in more than two years, data showed on
Wednesday, but faster growth in earnings means the Bank of
England is likely to keep signalling an interest rate hike is

The Office for National Statistics said the unemployment
rate edged up to 5.6 percent in the three months to May as the
number of people in employment fell by 67,000, primarily because
of fewer part-time workers.

Jul 14, 2015

BoE’s Miles says UK interest rate hike should come “soon”

LONDON, July 14 (Reuters)- – The Bank of England should raise interest rates their from record low levels soon and it does not have to wait for the U.S. Federal Reserve to move first, policymaker David Miles said on Tuesday.

Confounding his reputation as a “dove” on the Monetary Policy Committee, Miles said the case for raising interest rates was stronger than at any time since he joined as an external MPC member in 2009.

Jul 9, 2015

Bank of England keeps rates steady, officials eye wages and global risks

LONDON, July 9 (Reuters) – The Bank of England kept interest
rates at a record low once again on Thursday, as its
policymakers grappled with how to balance improving wage growth
in Britain against more ominous signals from the global economy.

The BoE’s Monetary Policy Committee, as expected, left its
Bank Rate at 0.5 percent, where it has been since the depths of
the financial crisis more than six years ago, and made no

Jun 30, 2015

UK economic growth revised up, buoyed by consumer spending

LONDON (Reuters) – Britain’s economy enjoyed a stronger start to the year than previously thought, buoyed by big-spending consumers and an upturn in business investment, but weak exports continued to act as a drag on growth.

New official data on Tuesday showed that over the past year, British households have seen a bigger boost to disposable income than at any time since 2001, as wages started to pick up and inflation fell toward its lowest in more than 50 years.

Jun 24, 2015

UK debt agency head sees higher chance of failed bond auction

LONDON (Reuters) – Britain is at increased risk of failing to find enough buyers at a government bond auction due to big day-to-day swings in market prices, the man responsible for selling the country’s debt said on Wednesday.

Robert Stheeman, chief executive of the UK Debt Management Office, told Reuters’ online Global Markets Forum that underlying demand for gilts remained strong. But the chances of a significant mismatch between buyers and sellers on a given day had risen as low liquidity was now a genuine problem.

Jun 2, 2015

Britain leans on consumers as mortgage approvals, loans surge

LONDON, June 2 (Reuters) – British mortgage approvals surged
by the most in six years in April and lending to individuals
also rose sharply, underlining the clout of the country’s
consumers but also its reliance on them to drive the economy.

Tuesday’s data from the Bank of England supported
expectations that the pace of the broader economic recovery will
pick up again by mid-year after slowing at the start of 2015,
giving a nudge to a long-running debate about when interest
rates might rise.

May 31, 2015

Crunch time for Greece; U.S. and Chinese data in focus

LONDON (Reuters) – Years of uncertainty and economic pain spent keeping Greece in the euro zone boils down in June to a handful of make-or-break debt repayments, while a raft of key data in the next few days will point to the progress of the global economy.

The threat posed to the wider world by an eventual Greek exit from the euro may have diminished over the last few years, but last week the United States warned of an “accident” for the world economy if Greece and its creditors miss deadlines this coming month to avert a debt default.

May 20, 2015

UK inflation negative for first time since 1960; BoE says temporary

LONDON (Reuters) – Britain’s annual rate of consumer price inflation fell below zero for the first time in more than half a century, official figures showed on Tuesday, though Bank of England Governor Mark Carney said the dip was likely to be brief.

British finance minister George Osborne also said the drop did not amount to “damaging deflation”, referring to a spiral of falling prices that hurt the economy.

May 19, 2015

UK inflation negative for first time since 1960, seen temporary

LONDON (Reuters) – Britain’s annual rate of consumer price inflation fell below zero for the first time since the 1960s, official figures showed on Tuesday, though economists said the dip into deflationary territory was likely to be brief.

British finance minister George Osborne also uickly said the drop did not amount to “damaging deflation,” referring to a scenario in which falling prices become entrenched and hurt the economy.