UK Economics Correspondent, London
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Jun 18, 2014

Premier Li says China’s economy won’t suffer hard landing

LONDON (Reuters) – Chinese Premier Li Keqiang said on Wednesday that China’s economy would not suffer a hard landing and would continue to grow at a medium to high pace in the long term without strong stimulus.

Li made the comments during a speech in London’s financial district on the final day of a visit which has yielded trade and investment deals worth 14 billion pounds ($23.76 billion) and strengthened Britain’s bid to become the dominant centre for the Western trade in offshore yuan CNH=.

Jun 18, 2014

BoE says surprised that markets saw low chance of 2014 rate hike

LONDON (Reuters) – Bank of England policymakers were surprised earlier this month that markets had not priced in a higher chance of an interest rate rise this year, minutes of their June meeting showed on Wednesday.

BoE Governor Mark Carney shocked markets last week when he said a rise in interest rates could come sooner than markets had been expecting, in comments that pushed sterling up toward a five-year high against the dollar.

Jun 17, 2014

UK inflation falls to 4 1/2-year low in May, but house prices soar

LONDON, June 17 (Reuters) – British inflation slumped to a 4
1/2-year low last month but house prices surged in April,
according to data that clouded the view for Bank of England
policymakers gauging Britain’s economic recovery.

Consumer price inflation dropped to 1.5 percent in May from
1.8 percent in April, its lowest since October 2009, after the
first year-on-year fall in food prices since 2006, the Office
for National Statistics said on Tuesday.

Jun 13, 2014

British rate rise in 2014 less certain than market thinks

LONDON (Reuters) – A Bank of England interest rate rise before the end of the year is a distinct possibility after unusually hawkish comments from Governor Mark Carney – but it is perhaps less certain than financial markets now think.

Carney surprised investors late on Thursday by saying that rates could rise sooner than markets had previously expected, causing sterling to soar to near a five-year high against the dollar and interest rate futures to price in a rise this year.

Jun 13, 2014

UK construction data revised higher, policy moves may hold sector back

LONDON, June 13 (Reuters) – British construction output grew
faster than previously thought in the first quarter, new figures
showed on Friday, but could slow in the next three months,
particularly after the government took steps to cool the housing
market.

Finance minister George Osborne said on Thursday that he
would give the Bank of England stronger powers to curb mortgage
lending, while BoE Governor Mark Carney said interest rates
could rise sooner than financial markets expect.

Jun 13, 2014

Carney signals earlier British rate rise, sterling soars

LONDON (Reuters) – Britain could become the first major economy to tighten monetary policy since the 2008 financial crisis, Bank of England Governor Mark Carney signaled, sending sterling shooting to a five-year high against the dollar on Friday.

Government bond yields soared, construction stocks tumbled and interest rate futures priced in a first hike by December after Carney said rates could rise sooner than financial markets had thought – his most hawkish signal to date.

Jun 13, 2014

Osborne gives Bank of England new powers to cap mortgages

LONDON (Reuters) – Chancellor George Osborne said on Thursday that he would give the Bank of England stronger powers to curb mortgage lending and reduce the risks that the housing market poses to financial stability.

British house prices have risen by 11 percent over the past year and are close to pre-crisis levels. The International Monetary Fund urged Britain last week to take steps to cool the housing market and reduce the risk of a bubble.

Jun 12, 2014

Bank of England’s Carney says rates could rise sooner than expected

LONDON (Reuters) – Bank of England Governor Mark Carney said on Thursday that British interest rates could rise sooner than financial markets expect, in a surprisingly stark warning that monetary policy may start to tighten in less than a year.

Speaking alongside British finance minister George Osborne, Carney also said the central bank would carefully weigh the merits next week of tackling housing market risks, including an undesirable loosening in mortgage underwriting standards.

Jun 12, 2014

UK’s Osborne gives Bank of England new powers over mortgages

LONDON, June 12 (Reuters) – British finance minister George
Osborne said on Thursday that he would give the Bank of England
stronger powers to curb mortgage lending and reduce the risks
that the housing market poses to financial stability.

British house prices have risen by 11 percent over the past
year and are close to pre-crisis levels. The International
Monetary Fund urged Britain last week to take steps to cool the
housing market and reduce the risk of a bubble.

Jun 12, 2014

Housing upturn not like booms of the past – BoE’s Broadbent

LONDON (Reuters) – Britain’s housing market upturn bears little resemblance to the debt-fuelled booms of the past, Bank of England policymaker Ben Broadbent said on Wednesday, adopting a more relaxed tone on housing risks than some of his peers.

Last week the International Monetary Fund urged Britain to cool its housing market, and figures from mortgage lender Halifax showed house prices rose at the fastest annual rate in more than six years in May.

    • 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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