UK Economics Correspondent, London
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Jun 12, 2015

Bank of England’s McCafferty says time for rate rise getting nearer

LONDON (Reuters) – The time for the Bank of England to start raising interest rates is getting closer, and economic data over the next few months will help determine exactly when that will be, a senior Bank of England policymaker said on Friday.

Ian McCafferty, a member of the Monetary Policy Committee who last year was in a minority calling for rate rises, said economic conditions were again getting nearer to warranting a rise in interest rates from their record-low 0.5 percent.

Jun 11, 2015

UK budget watchdog slashes forecast for oil and gas tax revenue

LONDON, June 11 (Reuters) – Britain’s budget watchdog has
slashed its forecast for how much tax will be paid by the oil
and gas industry over the next 25 years, a move that highlights
the fiscal challenge that would be faced by an independent
Scotland.

The Office for Budget Responsibility said on Thursday that
it expected total tax revenue between now and 2040 to amount to
just 8 billion pounds ($12.4 billion), compared with the 57
billion pounds predicted a year ago.

Jun 9, 2015

Osborne set to sharpen deficit-cutting commitment

LONDON (Reuters) – Chancellor George Osborne will seek to burnish his deficit-cutting credentials on Wednesday, fresh from a decisive Conservative victory in last month’s election, by reinforcing a long-term commitment to run budget surpluses.

Osborne will draft legislation to compel future governments to spend less than they raise in taxes during normal economic times — something that very few governments in British postwar economic history have managed — according to extracts of a speech that he will give to London’s finance industry.

Jun 9, 2015

UK consumers set for biggest splurge in a decade as crisis recedes

LONDON (Reuters) – British consumers finally look ready to spend like they used to, as lower prices for basics give them more money to eat out and travel, bolstering the economy against weak demand from abroad.

High inflation, meagre wage rises and increased unemployment curbed spending long after the recession ended in 2009.

Jun 9, 2015

Analysis – UK consumers set for biggest splurge in a decade as crisis recedes

LONDON (Reuters) – British consumers finally look ready to spend like they used to, as lower prices for basics give them more money to eat out and travel, bolstering the economy against weak demand from abroad.

High inflation, meagre wage rises and increased unemployment curbed spending long after the recession ended in 2009.

Jun 7, 2015

Britain to unveil plans to clean up markets hit by rigging scandals

LONDON, June 7 (Reuters) – Britain’s regulators will unveil
plans on Wednesday that aim to clean up behaviour in the
financial markets, where banks have been fined billions of
pounds for trying to rig currencies and interest rate
benchmarks.

The Bank of England, Treasury and the Financial Conduct
Authority will publish recommendations from their Fair and
Effective Markets Review into conduct and operation of currency,
bond and commodity markets.

Jun 1, 2015

UK manufacturing index edges off seven-month low – PMI

LONDON (Reuters) – British manufacturing activity inched higher in May after hitting a seven-month low in April, but strong domestic demand was largely offset by weak exports, a closely watched survey showed on Monday.

The Markit/CIPS manufacturing Purchasing Managers’ Index (PMI) rose to 52.0 in May from a downwardly revised 51.8 in April, a weaker increase than the rise to 52.5 forecast by a Reuters poll of analysts.

May 28, 2015

UK first-quarter growth sapped by surge in imports

LONDON (Reuters) – Britain sucked in imports in the first three months of 2015, and its large services sector performed weaker than first thought, casting doubt over the strength of its previously robust recovery.

The economy grew 0.3 percent in the first quarter, the Office for National Statistics said on Thursday, confirming an initial estimate which the Bank of England and most other economists had thought too gloomy.

May 27, 2015

U.S. urges EU, IMF to be flexible with Greece

LONDON (Reuters) – The United States urged international creditors to show more flexibility in negotiations with Greece’s cash-strapped government to avert a possible Greek default and exit from the euro zone with incalculable consequences.

U.S. Treasury Secretary Jack Lew issued the warning on Wednesday in a stopover in London on his way to a meeting of Group of Seven finance ministers in Dresden, Germany.

May 27, 2015

Ahead of G7, U.S. warns Europe not to miscalculate over Greece

LONDON (Reuters) – The United States urged European negotiators not to miscalculate as they try to negotiate a debt deal with Greece’s cash-strapped government, because the cost of a Greek exit from the euro zone was impossible to predict exactly.

U.S. Treasury Secretary Jack Lew issued the warning on Wednesday in a stopover in London on his way to a meeting of Group of Seven finance ministers in Dresden, Germany.

    • 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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