UK Economics Correspondent, London
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May 15, 2014

Immigration debate masks benefits to EU’s top economies

LONDON/BERLIN/PARIS (Reuters) – An unemployed builder sits on the pavement, begging for small change next to a slogan saying “EU policy at work – British workers are hit hard by unlimited cheap labor”.

The arresting image comes from an election poster for the United Kingdom Independence Party, a once-fringe movement that wants to withdraw Britain from the EU and looks set to garner the most votes in next week’s European Parliament polls.

May 14, 2014

Bank of England stresses no rush to raise rates as recovery builds

LONDON (Reuters) – The Bank of England pushed back against expectations it might raise interest rates in less than a year’s time, saying on Wednesday that Britain’s economic recovery is still in its early stages.

The central bank acknowledged a strong bounce-back in the labour market since last year, lowering its forecast for unemployment for the next couple of years.

May 14, 2014

Bank of England cuts jobless forecast, in no rush to raise rates

LONDON, May 14 (Reuters) – The Bank of England said on
Wednesday it is still in no rush to raise interest rates because
the recovery in the British economy remains in its early stages,
suggesting it may only raise rates in about a year’s time.

The central bank lowered its forecast for unemployment for
the next couple of years, but left largely unchanged its growth
and inflation forecasts as well as its assumptions on the timing
of interest rate rises.

May 13, 2014

Carney to tread fine line on growth, rates

LONDON (Reuters) – Bank of England Governor Mark Carney faces a difficult balancing act on Wednesday when he will try to acknowledge Britain’s strong economic recovery without adding to expectations of an early rise in interest rates.

Britain is set for economic growth of about 3 percent this year, faster than any other big, industrialised nation, and house prices have jumped by about 10 percent over the past 12 months, raising fears of a new property bubble.

May 13, 2014

Bank of England’s Carney to tread fine line on growth, rates

LONDON (Reuters) – Bank of England Governor Mark Carney faces a difficult balancing act on Wednesday when he will try to acknowledge Britain’s strong economic recovery without adding to expectations of an early rise in interest rates.

Britain is set for economic growth of about 3 percent this year, faster than any other big, industrialized nation, and house prices have jumped by about 10 percent over the past 12 months, raising fears of a new property bubble.

May 12, 2014

UK government bonds slide as markets brace for more hawkish BoE

LONDON (Reuters) – Ten-year British government bond prices fell sharply on Monday, as investors braced for a more hawkish message from the Bank of England on Wednesday when it publishes its quarterly economic forecast update.

The difference between interest rates on British and German government bonds rose to a 15-year high, as investors considered the risk that the BoE could increase borrowing costs as soon as the end of this year, while further stimulus appears possible from the European Central Bank.

May 9, 2014

UK factory output grows at fastest quarterly pace since 1999

LONDON, May 9 (Reuters) – British factory output grew at its
fastest pace in nearly 15 years during the first quarter of 2014
and the trade deficit narrowed, official data showed on Friday,
adding to signs that the economy is rebalancing.

The Office for National Statistics said manufacturing output
grew by 1.4 percent in the first three months of the year, up
from 0.6 percent in the last three months of 2013.

May 8, 2014

Bank of England sticks with low rates even as recovery builds

LONDON, May 8 (Reuters) – The Bank of England kept interest
rates at a record low on Thursday but the strong pace of
Britain’s economic recovery and a surge in house prices is
likely to lead to a split among policymakers soon.

As expected, the Bank’s Monetary Policy Committee left its
benchmark interest rate at 0.5 percent where it has sat since
the depths of the financial crisis more than five years ago.

Apr 29, 2014

UK economy grows at fastest pace in over six years

LONDON (Reuters) – Britain’s economy racked up its fastest growth in more than six years in early 2014, but a Bank of England interest rate rise is not imminent while the country makes up ground lost after the financial crisis.

Output jumped 3.1 percent in the first quarter compared with the same period last year, the biggest rise since the late 2007, the Office for National Statistics said.

Apr 29, 2014

UK economy grows at fastest in over six years, shy of forecasts

LONDON (Reuters) – Britain’s economy racked up its strongest annual growth in more than six years in early 2014 despite falling a touch short of forecasts, official data showed on Tuesday.

But the economy is still smaller than its peak before the 2008-09 recession, underscoring why the Bank of England has said it will not be raising interest rates quickly.

    • 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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