UK Economics Correspondent, London
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Feb 27, 2014

Wage rises may break Bank of England’s united front on forward guidance

LONDON (Reuters) – Wage growth is likely to be the fault line that splits Bank of England policymakers who, for now, are presenting an unusually united front.

In a string of speeches and interviews since the Bank announced its new guidance policy on February 12, Monetary Policy Committee members have stressed that the BoE is not going to start weaning Britain’s economy off record-low interest rates soon.

Feb 27, 2014

Government advised to hike minimum wage above inflation

LONDON (Reuters) – Britain’s minimum wage should increase by more than the rate of inflation for the first time in more than five years, government advisors recommended, helping low earners regain a little of the ground they have lost to a rising cost of living.

Britain’s Low Pay Commission (LPC) has proposed a 3 percent increase in Britain’s minimum wage, which would be the first above-inflation increase since 2008, the government said on Wednesday. The government usually accepts the commission’s recommendations.

Feb 25, 2014

Rate hike in second quarter 2015 ‘not unreasonable’ – Bank of England’s McCafferty

LONDON (Reuters) – Market expectations that the Bank of England will start to raise interest rates in the spring of 2015 are “not unreasonable”, BoE policymaker Ian McCafferty said in a Reuters interview, adding he was watching in particular for inflation risks.

The Bank announced a new version of its centrepiece forward guidance policy on February 12, linking its rate decisions to how quickly the economy uses up its spare capacity.

Feb 25, 2014

Rate hike in Q2 2015 “not unreasonable” – BoE’s McCafferty

LONDON (Reuters) – Market expectations that the Bank of England will start to raise interest rates in the spring of 2015 are “not unreasonable”, BoE policymaker Ian McCafferty said in a Reuters interview, adding he was watching in particular for inflation risks.

The BoE announced a new version of its centrepiece forward guidance policy on February 12, linking its rate decisions to how quickly the economy uses up its spare capacity.

Feb 25, 2014

Bank of England’s McCafferty would fear further sterling rise

LONDON (Reuters) – Further sterling strength would be a worry and could potentially make the Bank of England delay raising interest rates, BoE policymaker Ian McCafferty said in some of the central bank’s most forceful recent comments on the pound’s rise.

Boosted by Britain’s economic recovery, sterling has strengthened by more than 10 percent against the currencies of its main trading partners in less than a year, and earlier this month it hit its highest level in more than five years.

Feb 25, 2014

Rate hike in Q2 2015 “not unreasonable” – Bank of England’s McCafferty

LONDON, Feb 25 (Reuters) – Market expectations that the Bank
of England will start to raise interest rates in the spring of
2015 are “not unreasonable”, BoE policymaker Ian McCafferty said
in a Reuters interview, adding he was watching in particular for
inflation risks.

The BoE announced a new version of its centrepiece forward
guidance policy on Feb. 12, linking its rate decisions to how
quickly the economy uses up its spare capacity.

Feb 21, 2014

Britain on track to meet budget goal despite tax shortfall

LONDON, Feb 21 (Reuters) – Lower income and corporation tax
receipts dragged Britain’s public finances to a much smaller
than usual seasonal surplus in January, but the government still
looks on track to meet borrowing targets ahead of its annual
budget.

Deficit reduction has been finance minister George Osborne’s
key policy since Britain’s Conservative-led coalition came to
power in May 2010 when Britain’s budget deficit was one of the
world’s largest at 11 percent of economic output.

Feb 21, 2014

Weak income, corporation taxes hit UK public finances ahead of budget

LONDON (Reuters) – Lower income tax and corporation tax receipts dragged Britain’s public finances to a much smaller than usual seasonal surplus in January, as finance minister George Osborne prepares his annual budget.

Strong performance earlier in the financial year means Osborne still looks on track for public sector net borrowing, excluding financial sector interventions and some other one-off effects, to fall broadly as forecast in December.

Feb 21, 2014

Weak income, corporation taxes hit UK public finances ahead of budget

LONDON, Feb 21 (Reuters) – Lower income tax and corporation
tax receipts dragged Britain’s public finances to a much smaller
than usual seasonal surplus in January, as finance minister
George Osborne prepares his annual budget.

Strong performance earlier in the financial year means
Osborne still looks on track for public sector net borrowing,
excluding financial sector interventions and some other one-off
effects, to fall broadly as forecast in December.

Feb 20, 2014

English housing starts at highest level since 2007 – government data

LONDON, Feb 20 (Reuters) – Construction started on more new
homes in England last year than at any point since 2007,
government data showed on Thursday, suggesting rising house
prices and incentives to promote home-building are having some
impact on supply.

Work began on 123,010 homes during 2013, a 24 percent rise
on 2012 and one that offers some support for a Bank of England
forecast that investment in housing will increase by nearly a
quarter this year after slumping during the financial crisis.

    • 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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