UK Economics Correspondent, London
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Aug 12, 2015

Lower bonuses hit UK wage growth, jobless rate steady

LONDON (Reuters) – British wage growth fell to a three-month low in June and rapid gains in employment seen over the past couple of years ground to a halt, official figures showed Wednesday, reinforcing the view that the Bank of England is in no rush to raise interest rates.

Headline annual earnings growth fell sharply to 2.4 percent in the three months to June from 3.2 percent in the three months to May, the Office for National Statistics said, after a fall in bonuses took a bigger toll than economists had forecast.

Aug 11, 2015

Bank of England to look more closely at costs of financial regulation

LONDON, Aug 11 (Reuters) – The Bank of England will study
the cumulative economic costs of financial regulations
introduced since the global financial crisis, it said on
Tuesday, after the government told it to help promote
competition and investment.

Britain spent billions bailing out failing banks in 2008 and
2009. Despite continued public anger over the role of the banks
in that crisis, however, finance minister George Osborne has
signalled the Conservative government wants to move on since
winning re-election in May.

Aug 7, 2015

Bank of England signals early 2016 hike after sterling climb

LONDON (Reuters) – The Bank of England pointed to a possible rise in interest rates early next year as just one of its top policymakers backed an immediate move and it said the strength of sterling meant inflation would only pick up slowly.

The pound fell sharply and investors briefly pushed back their bets on a first rate hike until June next year, before BoE Governor Mark Carney said the Bank was getting closer to beginning to undo its stimulus for Britain’s economy.

Aug 6, 2015

Lone BoE official votes to raise rates, others unrushed

LONDON (Reuters) – The Bank of England appeared in no rush to start raising interest rates on Thursday, with minutes showing just one top policymaker voted to do so this week while the bank forecasts only a slow pick-up in inflation, which sits at zero.

Sterling fell to its lowest in nearly two weeks against the dollar, while British government bonds rallied.

Aug 6, 2015

Lone Bank of England official votes to raise rates, others unrushed

LONDON (Reuters) – The Bank of England appeared in no rush to start raising interest rates on Thursday, with minutes showing just one top policymaker voted to do so this week while the bank forecasts only a slow pick-up in inflation, which sits at zero.

Sterling fell to its lowest in nearly two weeks against the dollar, while British government bonds rallied.

Aug 5, 2015

Former BoE deputy governor to lift lid on UK statistics

LONDON (Reuters) – An official investigation into Britain’s economic statistics will seek ways to cast more light on the inner workings of companies to try to find solutions to a nagging productivity problem, the head of the review said.

Charlie Bean, a former Bank of England deputy governor who heads the review launched on Wednesday, also told Reuters he wanted Britain to modernise the way it measures what is going on in its economy by using digital technology to capture more data and analyse it in greater detail.

Aug 3, 2015

Sterling strength gives Bank of England rate-setters a headache

LONDON, Aug 3 (Reuters) – As the Bank of England moves
closer to raising interest rates for the first time since 2007,
the strength of sterling is causing disagreement among its
policymakers over when to pull the trigger.

The BoE is due to make a slew of announcements on Thursday,
among them its forecasts for inflation, which will give
investors a better sense of how soon rates are likely to rise.

Jul 31, 2015

New Bank of England policymaker says to cut all hedge fund ties

LONDON, July 31 (Reuters) – New Bank of England policymaker
Gertjan Vlieghe said on Friday that he would sever all links
with his previous employer, one of the world’s biggest hedge
funds, to avoid “any mistaken impression” of a conflict of
interest.

Vlieghe had wanted to stay part of a long-term incentive
plan at Brevan Howard, where he was a partner, after he joins
the BoE’s Monetary Policy Committee on Sept. 1.

Jul 30, 2015

Edging towards rate hike, BoE sets out money market reform plan

LONDON, July 30 (Reuters) – The Bank of England set out
plans on Thursday to reform a key benchmark for interbank
borrowing costs, a measure of financial conditions that will
come into sharper focus as the central bank comes closer to its
first interest rate increase in nearly a decade.

The BoE said it would broaden the data it collects on
overnight lending between companies, as part of its effort to
make the Sterling Overnight Index Average (SONIA) more
representative of the money market when the central bank becomes
sole administrator next year.

Jul 29, 2015

New Bank of England rate-setter to keep interest in hedge fund

LONDON, July 29 (Reuters) – New Bank of England policymaker
Gertjan Vlieghe will retain a financial interest in one of the
world’s biggest hedge fund firms while he sets interest rates,
an arrangement which Britain’s finance ministry said posed no
conflict of interest.

Some economists privately expressed surprise when the
ministry said on Tuesday that Vlieghe, who joins the Monetary
Policy Committee on Sept. 1, would still receive income from his
current employer, Brevan Howard, whose traders bet on rate
moves.

    • 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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