UK Economics Correspondent, London
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Nov 12, 2014

Bank of England sees inflation below one percent, slower rate rises

LONDON (Reuters) – British inflation is likely to fall below 1 percent in the next six months, the Bank of England said on Wednesday, encouraging investors to build on their bets that it will not raise interest rates until late next year.

Sterling weakened and British government bonds prices rose as the forecasts were published and as the Bank’s governor, Mark Carney, pointed to “troubling” development in the euro zone, home to Britain’s main trading partners, where the economy is at risk of falling back into recession.[GBP/]

Nov 12, 2014

Bank of England sees inflation below 1 pct, slower rate rises

LONDON, Nov 12 (Reuters) – British inflation is likely to
fall below 1 percent in the next six months, the Bank of England
said on Wednesday, encouraging investors to build on their bets
that it will not raise interest rates until late next year.

Sterling weakened and British government bonds prices rose
as the forecasts were published and as the Bank’s governor, Mark
Carney, pointed to “troubling” development in the euro zone,
home to Britain’s main trading partners, where the economy is at
risk of falling back into recession.

Nov 7, 2014

IMF, U.S. encourage ECB, Japan monetary stimulus

PARIS, Nov 7 (Reuters) – The International Monetary Fund and
the United States encouraged the European Central Bank and the
Bank of Japan toward greater monetary stimulus on Friday and
urged governments around the world to do their share to
encourage growth in their countries.

Calling the world economy “fragile, brittle and fragmented”,
IMF Managing Director Christian Lagarde told a conference of
central bankers in Paris it was “perfectly legitimate and
appropriate” for the ECB and the BoJ to take unconventional
steps to combat low inflation and economic stagnation.

Nov 7, 2014

ECB’s Noyer sees need for government bond buying if deflation looms

PARIS, Nov 7 (Reuters) – The European Central Bank should be
ready in an emergency to buy government bonds to combat
prolonged low inflation, a senior ECB policymaker said on
Friday, just as the United States is ending such so-called
quantitative easing.

Speaking a day after the ECB ordered its staff to start
preparing for bolder measures if needed, Governing Council
member Christian Noyer said central banks should be prepared to
buy public debt if needed to avert deflation or a run on
sovereign bonds.

Nov 4, 2014

Top UK regulator sees problem with foreign money laundering rules

LONDON, Nov 4 (Reuters) – The over-zealous application of
anti-money laundering rules is hampering British banks abroad
and cutting off poorer countries from global financial markets,
a top Bank of England regulator said on Tuesday.

BoE deputy governor Andrew Bailey, who heads the arm of the
central bank in charge of most day-to-day financial regulation,
said British banks risked being put out of business if they
tripped up on foreign money laundering rules.

Oct 31, 2014

Bank of England increases lenders’ risk buffers, but less than expected

LONDON (Reuters) – The Bank of England told British banks on Friday they will be required to hold more capital to guard against the risks of bad loans, but the new measures were less stringent than many had expected.

Shares in Barclays (BARC.L: Quote, Profile, Research, Stock Buzz) — one of the banks which analysts had feared might be hit hardest by the new rules — rose a hefty 7 percent on the news, and shares in Lloyds Banking Group (LLOY.L: Quote, Profile, Research, Stock Buzz) also gained.

Oct 29, 2014

UK lenders cut back on new mortgages as housing market slows

LONDON, Oct 29 (Reuters) – British lenders approved the
fewest mortgages in more than a year last month, adding to signs
that previously rapid growth in Britain’s housing market and the
broader economy is slowing.

The Bank of England said on Wednesday that mortgage
approvals for house purchase fell to 61,267 in September from
64,054 in August — a bigger drop than economists had expected
and the lowest total since July 2013.

Oct 28, 2014

Bank of England’s Cunliffe says can keep rates low for longer

LONDON (Reuters) – The Bank of England can afford to keep interest rates at their current record low for longer than thought, due to weak pay, low inflation and a darker international outlook, Deputy Governor Jon Cunliffe said on Tuesday.

Cunliffe’s comments are similar to those from chief economist Andy Haldane and fellow deputy governor Minouche Shafik – and suggest that two other policymakers who have backed a rate rise recently are unlikely to find further support soon.

Oct 24, 2014

Rapid UK recovery starts to slow from previous red-hot pace

LONDON (Reuters) – Britain still looks on track to outpace other advanced economies this year after rapid growth eased only slightly in the three months to September, but a euro zone slowdown could hamper the recovery in the run-up to next May’s election.

Official data on Friday showed the economy expanded by 0.7 percent in the third quarter, compared with 0.9 percent the quarter before – in line with forecasts in a Reuters poll.

Oct 24, 2014

Rapid UK economic growth slows slightly in Q3

LONDON (Reuters) – Britain’s rapid economic recovery eased in the three months to September, as services output growth slowed and manufacturing expanded at the weakest pace in 18 months, official data showed on Friday.

Gross domestic product expanded by 0.7 percent in the third quarter, compared with 0.9 percent the quarter before, in line with forecasts in a Reuters poll and above its long-run average.

    • 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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