UK Economics Correspondent, London
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Oct 31, 2014

Bank of England increases lenders’ risk buffers, but less than expected

LONDON (Reuters) – The Bank of England told British banks on Friday they will be required to hold more capital to guard against the risks of bad loans, but the new measures were less stringent than many had expected.

Shares in Barclays (BARC.L: Quote, Profile, Research, Stock Buzz) — one of the banks which analysts had feared might be hit hardest by the new rules — rose a hefty 7 percent on the news, and shares in Lloyds Banking Group (LLOY.L: Quote, Profile, Research, Stock Buzz) also gained.

Oct 29, 2014

UK lenders cut back on new mortgages as housing market slows

LONDON, Oct 29 (Reuters) – British lenders approved the
fewest mortgages in more than a year last month, adding to signs
that previously rapid growth in Britain’s housing market and the
broader economy is slowing.

The Bank of England said on Wednesday that mortgage
approvals for house purchase fell to 61,267 in September from
64,054 in August — a bigger drop than economists had expected
and the lowest total since July 2013.

Oct 28, 2014

Bank of England’s Cunliffe says can keep rates low for longer

LONDON (Reuters) – The Bank of England can afford to keep interest rates at their current record low for longer than thought, due to weak pay, low inflation and a darker international outlook, Deputy Governor Jon Cunliffe said on Tuesday.

Cunliffe’s comments are similar to those from chief economist Andy Haldane and fellow deputy governor Minouche Shafik – and suggest that two other policymakers who have backed a rate rise recently are unlikely to find further support soon.

Oct 24, 2014

Rapid UK recovery starts to slow from previous red-hot pace

LONDON (Reuters) – Britain still looks on track to outpace other advanced economies this year after rapid growth eased only slightly in the three months to September, but a euro zone slowdown could hamper the recovery in the run-up to next May’s election.

Official data on Friday showed the economy expanded by 0.7 percent in the third quarter, compared with 0.9 percent the quarter before – in line with forecasts in a Reuters poll.

Oct 24, 2014

Rapid UK economic growth slows slightly in Q3

LONDON (Reuters) – Britain’s rapid economic recovery eased in the three months to September, as services output growth slowed and manufacturing expanded at the weakest pace in 18 months, official data showed on Friday.

Gross domestic product expanded by 0.7 percent in the third quarter, compared with 0.9 percent the quarter before, in line with forecasts in a Reuters poll and above its long-run average.

Oct 24, 2014

Rapid UK economic growth slows slightly in third-quarter

LONDON (Reuters) – Britain’s rapid economic recovery eased in the three months to September, as services output growth slowed and manufacturing expanded at the weakest pace in 18 months, official data showed on Friday.

Gross domestic product expanded by 0.7 percent in the third quarter, compared with 0.9 percent the quarter before, in line with forecasts in a Reuters poll and above its long-run average.

Oct 22, 2014

Bank of England minutes add to signs rate hike on back burner

LONDON (Reuters) – Most Bank of England policymakers are firmly against raising interest rates, seeing little evidence of inflation pressures while the slowing euro zone poses growing risks, minutes of their latest meeting showed.

The majority of the Bank’s rate-setters saw good reasons to keep rates at their record low of 0.5 percent at their Oct. 7-8 meeting, which was held even before signs emerged of deeper problems in Britain’s key exports markets in Europe.

Oct 21, 2014

Rising UK borrowing leaves no room for pre-election sweeteners

LONDON (Reuters) – British government borrowing rose more than 10 percent in the first half of the financial year, giving Chancellorp George Osborne little scope to offer sweeteners to voters before a parliamentary election in May.

Osborne said in March he would aim to reduce the budget deficit by more than 10 percent over the following 12 months, helped by Britain’s fast-recovering economy. But Tuesday’s official data make that target look out of reach.

Oct 20, 2014

Bank of England payments system suffers lengthy outage

LONDON (Reuters) – A Bank of England payments system that handles more than 260 billion pounds ($420 billion) a day suffered a major outage on Monday, forcing the central bank to extend its operating hours until late into the evening.

The Real Time Gross Settlement System (RTGS) which underpins a system for high-value interbank payments and securities settlement did not work normally until around 11 A.M. EDT on Monday.

Oct 17, 2014

Bank of England may keep rates lower for longer, says chief economist

LONDON, Oct 17 (Reuters) – The Bank of England may need to
keep interest rates lower for longer than previously thought to
reduce the chance of Britain’s economy slipping into long-term
stagnation, its chief economist Andrew Haldane said on Friday.

Haldane said he was now more downbeat about the outlook for
the economy, due to weaker global growth, greater financial and
political risks and the danger that wages and productivity might
continue to fail to recover as forecast.

    • 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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