UK Economics Correspondent, London
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Sep 17, 2014

Most Bank of England officials oppose rate rise as wages stagnate

LONDON (Reuters) – Most Bank of England policymakers remained firmly against raising interest rates when they met this month, and data released on Wednesday showed wages rising at their slowest pace on record, indicating inflationary pressure will remain subdued.

The British economy is set to grow faster than other major advanced economies this year, and unemployment fell more than expected in the three months to July, reaching a five-year low of 6.2 percent compared with 7.7 percent a year before.

Sep 15, 2014

Sterling jitters set to last as Scots vote goes to the wire

LONDON, Sept 15 (Reuters) – Sterling traded marginally lower
on Monday after another round of polls showed Thursday’s vote on
Scottish independence still too close to call, keeping bets for
volatility over the next week at its highest in four years.

Economic data releases this week may turn markets briefly
away from a debate that threatens to rip the United Kingdom
apart and set it on a new political and financial course.

Sep 12, 2014

UK construction output stagnates in July as housebuilding slows

LONDON, Sept 12 (Reuters) – British construction output
stagnated in July as a rapid expansion in house building started
to level off, causing annual growth to sink to an eight-month
low.

However, orders for new work rose at the fastest rate in a
year, leaving economists confident that the coming months would
bring robust growth, particularly as earlier private-sector
surveys have also pointed towards a continued strength.

Sep 11, 2014

Bank of England sees Bitcoin fraud risk, deflation danger

LONDON, Sept 11 (Reuters) – Bitcoin and similar digital
currencies may be at increasing risk of fraud and could damage
Britain’s economy if they find widespread use, the Bank of
England said on Thursday.

The BoE said the finite supply of Bitcoins – which are
traded between users outside the banking system, and used to buy
goods ranging from pizzas to PCs – meant that an economy where
they formed the main currency would be at risk of deflation.

Sep 11, 2014

Bank of England’s Kohn urges banks to focus on risks from end to quantitative easing

LONDON (Reuters) – British banks need to prepare for the risk of financial market turmoil when central banks end unconventional monetary policy such as asset purchases, the Bank of England said on Thursday.

Don Kohn, a former vice-chairman of the U.S. Federal Reserve who now serves on the BoE’s main risk watchdog, told British banks to guard against the risk of defaults, sharp rises in market interest rates and illiquid assets as monetary policy returns to normal after the financial crisis.

Sep 11, 2014

Bank of England’s Kohn urges banks to focus on risks from end to QE

LONDON, Sept 11 (Reuters) – British banks need to prepare
for the risk of financial market turmoil when central banks end
unconventional monetary policy such as asset purchases, the Bank
of England said on Thursday.

Don Kohn, a former vice-chairman of the U.S. Federal Reserve
who now serves on the BoE’s main risk watchdog, told British
banks to guard against the risk of defaults, sharp rises in
market interest rates and illiquid assets as monetary policy
returns to normal after the financial crisis.

Sep 10, 2014

London’s Royal Opera targets youngest-ever audience

LONDON, Sept 11 (Reuters) – Britain’s Royal Opera House will
open its doors to children as young as two when its new season
starts on Thursday, as the 282-year-old institution seeks a new
generation of music-lovers.

Alongside staples such as Puccini’s “La Boheme”, the Royal
Opera’s 2014/15 season will also see more toddler-friendly new
work such as “Dot, Squiggle and Rest” – a performance aimed at
those aged between two and five.

Sep 10, 2014

Independent Scotland might need big currency reserves: Bank of England

LONDON (Reuters) – An independent Scotland would need big stockpiles of sterling if the country adopted the pound without an agreement with the rest of the United Kingdom, Bank of England Governor Mark Carney said on Wednesday.

Scotland’s future currency arrangements are a disputed topic in the run-up to next week’s referendum over whether to dissolve the 307-year-old union with the rest of the United Kingdom.

Sep 2, 2014

Analysis – In countdown to UK election, rate hike moves to centre stage

LONDON (Reuters) – Britain’s politicians and central bankers are watching one another even more closely than usual as the timing of a national election and a headline-making interest rate rise look set to converge.

With parliament and the Bank of England returning to work after the summer, the approach of the vote on May 7, 2015 is likely to be a key factor in the BoE’s thinking on when to raise interest rates for the first time since the financial crisis.

Sep 2, 2014

In countdown to UK election, rate hike moves to center stage

LONDON (Reuters) – Britain’s politicians and central bankers are watching one another even more closely than usual as the timing of a national election and a headline-making interest rate rise look set to converge.

With parliament and the Bank of England returning to work after the summer, the approach of the vote on May 7, 2015 is likely to be a key factor in the BoE’s thinking on when to raise interest rates for the first time since the financial crisis.

    • About David

      "David keeps a close watch on the UK economy, the Bank of England and the British government debt market. Previously he worked in Frankfurt, covering the European Central Bank and euro zone economy, and in Brussels where he reported on everything from EU summits to Belgian supermarkets."
      Languages:
      English, French, German
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