UK Economics Correspondent, London
David's Feed
Sep 18, 2015

UK bond prices jump, sterling surges as Fed stays on hold

LONDON, Sept 18 (Reuters) – British financial markets scaled
back expectations for the Bank of England to tighten monetary
policy on Friday after the U.S. Federal Reserve backed away from
raising interest rates, pushing both bond prices and sterling
higher.

British government bonds initially chalked up their
strongest one-day gains since early July, when Greece was
scrambling for fresh aid from creditors, while markets pushed
back bets on a BoE rate rise deep into the second half of 2016.

Sep 16, 2015

Bank of England’s Carney sticks to rate view, others more hawkish

LONDON, Sept 16 (Reuters) – Bank of England Governor Mark
Carney on Wednesday stuck to his view that a decision on whether
to start raising interest rates will become clearer around the
end of the year, but two other rate-setters at the BoE sounded
closer to voting for a move.

Carney, in an annual report to parliament, repeated a
comment he made in July and again in August that strength in
Britain’s economy probably meant a decision on rates will come
into “sharper relief around the turn of this year”.

Sep 15, 2015

UK inflation slips back to zero, BoE rate hike months away

LONDON (Reuters) – British inflation fell back to zero in August after oil prices dropped at the fastest rate since the start of the year, keeping annual price growth far below the Bank of England’s target and an interest rate rise off the table for now.

Headline consumer price inflation (CPI) dipped into negative territory for the first time in more than 50 years in April, and has been 0.1 percent or lower over the past six months, despite solid economic growth and rising wages.

Sep 11, 2015

Weak UK construction data adds to signs of cooling growth

LONDON, Sept 11 (Reuters) – The amount of new housing built
in Britain fell for the first time in more than two years in
July, despite rising house prices, driving a broader decline in
construction that adds to signs that the country’s economy is
slowing.

The official figures on Friday contrast with bumper profits
reported by house-builders and follow weak manufacturing figures
which have raised questions about whether growth is cooling as
the Bank of England comes nearer to raising interest rates.

Sep 10, 2015

Bank of England keeps rates steady, unfazed by overseas risks

LONDON (Reuters) – The Bank of England said on Thursday its rate-setters felt the threat to the world economy from China’s stock-market slump did not signal a slowdown for Britain, as they left interest rates at a record-low of 0.5 percent.

Policymakers voted 8-1 to keep rates unchanged, as expected, and they broadly agreed with Governor Mark Carney, who has said that, so far, China’s slowdown is unlikely to derail the plan to gradually raise British rates.

Sep 10, 2015

British house prices rise strongly in August on lack of new homes

LONDON, Sept 10 (Reuters) – British house prices rose
strongly in August, pushed up by a lack of property coming onto
the market, according to two surveys published on Thursday,
adding urgency to a push by the government to encourage more
house-building.

Mortgage lender Halifax and a group representing British
property valuers said house prices in August showed their
biggest monthly increase since May last year.

Sep 8, 2015

UK officials deny selling RBS stake too cheaply

LONDON, Sept 8 (Reuters) – British lawmakers challenged
public officials on Thursday over whether they had allowed more
than 2 billion pounds ($3.1 billion) of government shares in
Royal Bank of Scotland to be sold too cheaply last
month.

As global share prices started to come off their highs in
early August, the British government sold 5 percent of RBS at a
price worth a third less than it paid when it rescued the bank
with 46 billion pounds of public money at the peak of the
2007-09 financial crisis.

Sep 7, 2015

Britain says to take in 20,000 Syrian refugees over five years

LONDON (Reuters) – British Prime Minister David Cameron pledged on Monday to take in up to 20,000 Syrian refugees over the next five years, responding to public clamor for his government to help those fleeing civil war in the country.

“We are proposing that Britain should resettle up to 20,000 Syrian refuges over the rest of this parliament. In doing so, we will continue to show the world that this country is a country of extraordinary compassion,” he told parliament.

Sep 3, 2015

UK growth set to slow after services sector gauge hits two-year low

LONDON, Sept 3 (Reuters) – Businesses in Britain’s services
sector recorded their slowest growth in more than two years last
month, mirroring signs of economic weakness in the United States
and China, a closely watched survey showed on Thursday.

Financial data company Markit, which compiled the figures,
said Britain’s overall economic growth rate was likely to slow
to 0.5 percent in the three months to September from an
above-average 0.7 percent in the second quarter.

Sep 3, 2015

UK growth set to fall back after services sector weakens – PMI

LONDON, (Reuters) – Britain’s services sector recorded its weakest growth in more than two years last month, mirroring signs of economic weakness in the United States and China, a closely watched survey showed on Thursday.

Financial data company Markit, which compiled the figures, said Britain’s overall economic growth rate was likely to slow to 0.5 percent in the three months to September from an above-average 0.7 percent in the second quarter.

    • 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
    • More from David

    • Contact David

    • Follow David