Economics Correspondent
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Jun 6, 2011

Government says no “plan B”, but pressure mounts

LONDON (Reuters) – The government was forced to defend its economic priorities on Sunday after more than 50 left-leaning economists said the pace of its deficit reduction campaign was putting economic recovery at risk.

In a letter to the Observer newspaper, the group said the government’s “breakneck” austerity drive was self-defeating because weaker growth would take its toll on government tax receipts.

Jun 5, 2011

Plan for post-Gaddafi Libya “embryonic”: UK’s Hague

LONDON (Reuters) – Libyan rebels need to flesh out their plans for post-Gaddafi rule and convince members of the current Libyan administration that they could work together, British Foreign Secretary William Hague said on Sunday.

Speaking on his return from rebel-held Benghazi, Hague said he was confident that the rebels’ desire for democracy was genuine but conceded their blueprint was “embryonic.”

Jun 5, 2011

Plan for post-Gaddafi Libya “embryonic”- Hague

LONDON (Reuters) – Libyan rebels need to flesh out their plans for post-Gaddafi rule and convince members of the current Libyan administration that they could work together, Foreign Secretary William Hague said on Sunday.

Speaking on his return from rebel-held Benghazi, Hague said he was confident that the rebels’ desire for democracy was genuine but conceded their blueprint was “embryonic.”

May 27, 2011

UK consumer confidence posts near-record jump in May

LONDON, May 27 (Reuters) – British consumer morale jumped in
May to its highest level this year and house prices nudged up,
providing glimmers of hope for an economy struggling to get out
of the doldrums, but analysts warned against reading too much
into the figures.

Bank of England arch-dove Adam Posen also said on Friday
that public spending cuts and below-inflation wage rises meant
stiff headwinds to recovery lay ahead. [ID:nN26267589]

May 25, 2011

Economy grows feebly as household spending drops

LONDON (Reuters) – Britain’s economy made a sluggish start to the year as an improved trade performance was more than offset by the sharpest fall in household spending since the recession, a second estimate of gross domestic product showed on Wednesday.

The figures highlight the challenge facing the government as it tries to rein in Britain’s budget deficit and will reinforce expectations that UK interest rates will stay at record lows for some months to come.

May 25, 2011

Economy grows feebly in Q1 as household spending drops

LONDON (Reuters) – The economy made a sluggish start to the year as an improved trade performance was more than offset by the sharpest fall in household spending since the recession, a second estimate of gross domestic product showed on Wednesday.

The figures highlight the challenge facing the government as it tries to rein in the budget deficit and will reinforce expectations that interest rates will stay at record lows for some months to come.

May 18, 2011

Bank still firmly split on rate rise

LONDON (Reuters) – The Bank of England was no closer to voting for a rise in interest rates in May and two of the policymakers backing a rise conceded the argument was still “finely balanced”, minutes showed on Wednesday.

The Monetary Policy Council voted 6-3 against a rise for a fourth straight month, with Andrew Sentance, Martin Weale and Spencer Dale all saying the case for tightening was strong and had been reinforced by this month’s quarterly update to the BoE’s economic forecasts.

May 18, 2011

BoE still firmly split on rate rise in May

LONDON, May 18 (Reuters) – The Bank of England was no closer
to voting for a rise in interest rates in May and two of the
policymakers backing a rise conceded the argument was still
“finely balanced”, minutes showed on Wednesday.

The Monetary Policy Council voted 6-3 against a rise for a
fourth straight month, with Andrew Sentance, Martin Weale and
Spencer Dale all saying the case for tightening was strong and
had been reinforced by this month’s quarterly update to the
BoE’s economic forecasts.

May 17, 2011

Inflation jump deepens Bank’s dilemma

LONDON (Reuters) – Annual inflation hit a 2-1/2 year high last month and core prices rose at a record pace, deepening the policy dilemma for the Bank of England as it keeps interest rates low to support a sluggish economy.

Consumer prices rose a bigger-than-expected 4.5 percent year-on-year, the fastest pace on increase since October 2008, propelled by soaring travel costs around Easter and higher duty on alcohol and tobacco.

May 17, 2011

Inflation jumps in April, deepens Bank dilemma

LONDON (Reuters) – Annual inflation hit a 2-1/2 year high last month and core prices rose at a record pace, deepening the policy dilemma for the Bank of England as it keeps interest rates low to support a sluggish economy.

Consumer prices rose a bigger-than-expected 4.5 percent year-on-year, the fastest pace on increase since October 2008, propelled by soaring travel costs around Easter and higher duty on alcohol and tobacco.

    • About Christina

      "Christina Fincher is an economics correspondent based in London. She joined Reuters 12 years ago and has spent much of that time covering financial markets -- foreign exchange, fixed income and credit. Prior to that she worked as a translator for FT Information, where she worked with both French and Italian."
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