LONDON, July 2 (Reuters) – Raising interest rates is the
Bank of England’s last line of defence against asset price
bubbles, its chief economist, Andy Haldane, said on Wednesday as
British house prices posted their biggest rise in nine years.
Figures out earlier on Wednesday showed that house prices
have risen by nearly 12 percent in the past year and are more
than 25 percent higher in London – the sharpest increase there
since the eve of the 1987 financial crash.
LONDON, July 2 (Reuters) – Britain’s house prices rose at
their fastest rate in nine years and London prices showed their
biggest jump in a generation, data showed on Wednesday, as
measures to curb mortgage lending have yet to have an impact.
Stricter checks on borrowers’ ability to pay back mortgages
were introduced in April and have weighed on the approval of
home loans. Some fear these could become unaffordable when
interest rates eventually rise from a record low.
LONDON, July 1 (Reuters) – The Bank of England revealed on
Tuesday how it made a secret recommendation to Britain’s finance
ministry in September 2011 to prepare for the risk of a euro
The central bank’s Financial Policy Committee – which at the
time was chaired by former governor Mervyn King – said the
finance ministry should plan for how it would rescue Britain’s
banks if they were hit by a country leaving the euro zone.
LONDON, July 1 (Reuters) – Bank of England policymakers
differed last month over how best to stop home-buyers from
borrowing too much, as they tried to reduce the risks from
rapidly rising house prices and high levels of debt.
A record of their June 17 meeting released on Tuesday also
revealed for the first time discussions between the BoE and
Britain’s finance ministry dating back to September 2011 over
how to protect against the risk of a euro zone break-up.
LONDON, June 30 (Reuters) – British lenders approved the
fewest mortgages in almost a year last month, but overall
lending grew solidly, giving mixed signals about how much the
housing market was slowing before new curbs were announced last
Bank of England Governor Mark Carney last week named growing
household debt linked to rapidly rising property prices as the
biggest threat to Britain’s financial stability, and imposed new
measures to rein in mortgage lending.
LONDON (Reuters) – British business investment grew at the fastest rate in two years in the first quarter of 2014, supporting robust economic growth and adding to signs that the country’s consumer-led recovery is becoming more sustainable.
The headline economic growth rate for the first quarter was unchanged at 0.8 percent in revised official data on Friday, but the numbers showed that business investment was growing almost twice as fast as previously thought.
LONDON, June 25 (Reuters) – Britain became the first Western
country to sell an Islamic bond on Wednesday, drawing orders of
more than 2 billion pounds ($3.39 billion) – over 10 times the
planned issue amount.
The five-year sukuk issue, intended to raise 200 million
pounds, is being launched by the government as part of an effort
to boost London’s position as a centre for Islamic finance.
LONDON (Reuters) – Bank of England Governor Mark Carney pushed back slightly on Tuesday against expectations that the bank will raise interest rates before the end of the year, saying Britain’s economy still has plenty of slack to work through.
He also said financial markets underestimate how much uncertainty there is in the economy.
LONDON, June 24 (Reuters) – Bank of England Governor Mark
Carney pushed back slightly on Tuesday against expectations that
the bank will raise interest rates before the end of the year,
saying Britain’s economy still has plenty of slack to work
He also said financial markets underestimate how much
uncertainty there is in the economy.
LONDON, June 23 (Reuters) – Canada’s finance minister Joe
Oliver warned on Monday that investors could be mispricing risk
as they hunt for better investment returns, and said
policymakers should keep the issue under close review.
Oliver is in London to promote trade and investment, and
told Reuters in an interview that the global economy remained
vulnerable to financial shocks.