UK Economics Correspondent, London
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Nov 28, 2013

Bank of England unexpectedly reins in plan to boost mortgage lending

LONDON (Reuters) – The Bank of England moved to head off the risk of a bubble in house prices on Thursday, making a surprise announcement that it would heavily scale back a scheme launched last year to boost mortgage lending.

Britain’s economy and its housing market have staged an unexpectedly strong turnaround since the BoE launched the Funding for Lending Scheme (FLS) with the finance ministry in July 2012 to help increase lending to home-buyers and businesses.

Nov 28, 2013

Bank of England scales back scheme to boost mortgage lending

LONDON (Reuters) – The Bank of England said on Thursday that it would heavily scale back a scheme launched last year to boost mortgage lending, as house price inflation looks set to accelerate further.

Britain’s economy has staged an unexpected turnaround since the BoE launched the Funding for Lending Scheme with Britain’s finance ministry in July 2012 to help increase lending to home-buyers and businesses.

Nov 27, 2013

UK’s Osborne to present first improvement in fiscal outlook since 2010

LONDON (Reuters) – For the first time since taking office in 2010, finance minister George Osborne will be able to present a more upbeat message about Britain’s finances in a budget update next week.

An unexpectedly strong rebound in economic growth since his budget in March will also give Osborne some scope to address rising living costs, the key challenge to his Conservative-led government’s re-election in May 2015.

Nov 27, 2013

Consumers drive British growth again, but business investment up too

LONDON, Nov 27 (Reuters) – Britain’s economic growth
broadened a bit in the third quarter of 2013 as companies
increased investment but strong consumer spending remained the
main driver of growth, leaving the recovery still vulnerable.

The economy expanded at its fastest pace in more than three
years as gross domestic product between July and September grew
by a quarterly 0.8 percent, details of earlier official data
confirmed.

Nov 26, 2013

Bank of England’s Carney hits back at guidance critics

LONDON, Nov 26 (Reuters) – Bank of England Governor Mark
Carney hit back on Tuesday at critics of forward guidance, his
centrepiece policy, saying economic recovery would be at risk if
the BoE had not spelt out how long it would keep interest rates
at record lows.

In a sometimes-tetchy session with lawmakers – which
contrasted with the warm reception at his first appearance
earlier this year – Carney also took aim at Britain’s official
statistics and expressed deep concern at reports Royal Bank of
Scotland had mistreated small businesses.

Nov 22, 2013

Sterling rises to five-year peak versus yen; gilt yields fall

LONDON (Reuters) – Sterling rose to a one-month high against the dollar and hit a five-year peak against a broadly weak yen on Friday, drawing support from favourable interest rate differentials and strong UK economic outlook.

The pound remained supported after a survey on Thursday revealed that British industrial orders were at the strongest level since March 1995.

Nov 19, 2013

Royal Mail share sale will not help UK to hit budget target – ONS

LONDON, Nov 19 (Reuters) – The British government’s sale of
2 billion pounds ($3.22 billion) of shares in Royal Mail
last month will not count towards a key budget deficit reduction
target, the country’s statistics agency ruled on Tuesday.

In a move that surprised some economists, the Office for
National Statistics said October’s share sale will not reduce
the government’s preferred borrowing measure, though it does
mean Britain will borrow less from financial markets.

Nov 13, 2013

Bank of England slashes jobless forecast, sows confusion over guidance

LONDON (Reuters) – The Bank of England slashed its unemployment forecast on Wednesday but said an early fall in the jobless rate would not trigger interest rate hikes, leaving analysts confused over its new centerpiece policy of forward guidance.

When BoE Governor Mark Carney launched the policy in August, he promised to keep rates at a record low at least until unemployment fell to 7 percent – something the BoE forecast at the time would take more than three years.

Nov 13, 2013

Bank of England more upbeat on economy but in no rush on rates

LONDON, Nov 13 (Reuters) – Britain’s unemployment rate will
fall much faster than previously expected due to a strengthening
economic recovery, the Bank of England said on Wednesday, but it
stressed that it was in no hurry to raise interest rates.

Governor Mark Carney committed in August to keep interest
rates at a record low 0.5 percent until unemployment fell to 7
percent – something the BoE predicted at the time could take
three years.

Nov 13, 2013

Bank of England to stick with rate pledge despite more upbeat forecasts

LONDON (Reuters) – Bank of England Governor Mark Carney is likely to stress on Wednesday that he is in no rush to raise interest rates despite a marked brightening in Britain’s economic outlook over the past three months.

The central bank will release fresh forecasts at 1030 GMT (5:30 A.M. EST), when it looks set to revise up its growth outlook and predict lower unemployment and inflation than three months ago, reflecting data that show Britain’s recovery is strengthening.

    • 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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