Economics Correspondent
Christina's Feed
Apr 27, 2011

UK economy makes feeble recovery in first quarter

LONDON, April 27 (Reuters) – Britain’s economy recovered
only modestly at the start of the year, hindered by a sharp drop
in construction and making it likely that the Bank of England
will keep interest rates at record lows for some months.

Gross domestic product expanded by 0.5 percent between
January and March, in line with forecasts, after contracting by
the same amount in the final three months of 2010.

Apr 27, 2011

GDP rebound seen too modest to trigger rate hike

LONDON (Reuters) – Britain’s economy is forecast to show only a feeble rebound in figures due on Wednesday that look set to fuel criticism of government austerity measures and keep Bank of England interest rates on hold at record lows.

The latest Reuters poll shows that analysts expect gross domestic product expanded by just 0.5 percent in the first three months of this year, barely making up for the 0.5 percent quarter-on-quarter drop at the end of last year. Such a figure is seen as giving the Bank of England the final argument to keep rates on hold for several more months.

Apr 26, 2011

UK rebound seen too modest to trigger Bank hike

LONDON (Reuters) – The economy is forecast to show only a feeble rebound in figures due on Wednesday that look set to fuel criticism of government austerity measures and keep Bank of England interest rates on hold at record lows.

The latest Reuters poll shows that analysts expect gross domestic product expanded by just 0.5 percent in the first three months of this year, barely making up for the 0.5 percent quarter-on-quarter drop at the end of last year.

Apr 21, 2011

Exclusive – Bank hawk Weale admits surprised by weak recovery

LONDON (Reuters) – Britain’s recovery in the first quarter has been disappointing, Bank of England policymaker Martin Weale said on Thursday, adding that the Bank’s forecasts in May could be crucial to his next vote on interest rates.

Weale has voted for higher rates since January, and has been in a minority of three on the nine-member Monetary Policy Committee for the past three months.

Apr 21, 2011

Growth worries halt advance of Bank of England hawks

LONDON (Reuters) – The three Bank of England policymakers wanting to raise interest rates are struggling to win over their peers, who appear increasingly worried about Britain’s recovery.

Minutes to the BoE’s April 6-7 meeting showed a 6-3 vote to leave rates at 0.5 percent, with the majority judging that recent data — particularly on household spending — had highlighted downside risks to growth.

Apr 20, 2011

Factbox – Growth worries halt advance of Bank of England hawks

LONDON (Reuters) – The three Bank of England policymakers wanting to raise interest rates are struggling to win over their peers, who appear increasingly worried about Britain’s recovery.

Minutes to the Bank’s April 6-7 meeting showed a 6-3 vote to leave rates at 0.5 percent, with the majority judging that recent data — particularly on household spending — had highlighted downside risks to growth.

Apr 8, 2011

Recovery doubts keep UK rates on hold

LONDON (Reuters) – The Bank of England held interest rates at a record-low 0.5 percent on Thursday, opting to wait for clearer signs of recovery before following the European Central Bank in tightening policy.

Although inflation in Britain is almost twice as high as in the euro zone — it hit 4.4 percent in February — Britain’s recovery is more shaky than that of France or Germany and the economy unexpectedly lurched into reverse at the end of 2010.

Apr 7, 2011

Recovery doubts keep BoE on hold while ECB hikes

LONDON, April 7 (Reuters) – The Bank of England held
interest rates at a record-low 0.5 percent on Thursday, opting
to wait for clearer signs of recovery before following the
European Central Bank in tightening policy.

Although inflation in Britain is almost twice as high as in
the euro zone — it hit 4.4 percent in February — Britain’s
recovery is more shaky than that of France or Germany and the
economy unexpectedly lurched into reverse at the end of 2010.

Apr 6, 2011

Bank to hold fire on rates in April, despite ECB

LONDON (Reuters) – The Bank of England looks set to leave interest rates at a record low this Thursday as weak domestic demand makes it reluctant to respond to what it hopes will be a temporary rise in inflation.

Only one of 67 economists polled by Reuters expects the Bank to raise rates this week. The majority reckon headwinds from the government’s fiscal tightening mean UK rates will not rise until May at the earliest, and probably not until August.

Apr 4, 2011

Bank of England to hold fire on rates in April

LONDON (Reuters) – The Bank of England looks set to leave interest rates at a record low this Thursday as weak domestic demand makes it reluctant to respond to what it hopes will be a temporary rise in inflation.

Only one of 67 economists polled by Reuters expects the BoE to raise rates this week. The majority reckon headwinds from the government’s fiscal tightening mean UK rates will not rise until May at the earliest, and probably not until August.

    • 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."
    • Follow Christina