UK Economics Correspondent, London
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Feb 24, 2015

Don’t use low inflation to curb pay, BoE’s Carney warns employers

LONDON (Reuters) – Bank of England chief Mark Carney warned employers on Tuesday not to use near-zero inflation as an excuse to offer staff low wage settlements, as that might derail Britain’s economic recovery.

British wages have only recently started to rise faster than inflation after years of real-term falls.

Feb 24, 2015

Don’t use low inflation to curb pay,Carney warns employers

LONDON (Reuters) – Bank of England chief Mark Carney warned employers on Tuesday not to use near-zero inflation as an excuse to offer staff low wage settlements, as that might derail Britain’s economic recovery.

British wages have only recently started to rise faster than inflation after years of real-term falls.

Feb 24, 2015

Government body urges 3 percent rise in minimum wage

LONDON (Reuters) – A British government body recommended a 3 percent rise in the minimum wage on Monday, which would take it to 6.70 pounds an hour, the biggest real-terms increase since 2007.

Although the wage rise is not due to take effect until October, the prospect of more pay could boost morale among Britain’s lowest earners in the run-up to a national election in May, when the cost of living is likely to be a major issue.

Feb 23, 2015

British government body urges 3 pct rise in minimum wage

LONDON, Feb 23 (Reuters) – A British government body
recommended a 3 percent rise in the minimum wage on Monday,
which would take it to 6.70 pounds ($10) an hour, the biggest
real-terms increase since 2007.

Although the wage rise is not due to take effect until
October, the prospect of more pay could boost morale among
Britain’s lowest earners in the run-up to a national election in
May, when the cost of living is likely to be a major issue.

Feb 12, 2015

Bank of England sees strong growth but ready to cut rates if needed

LONDON (Reuters) – The Bank of England said it expects stronger growth on the back of lower oil prices but it sees little need to raise interest rates this year and could even cut them if inflation proves weaker than expected, new forecasts showed on Thursday.

BoE Governor Mark Carney said he expected inflation to fall below zero in the coming months due to weak oil, but stressed that this by itself did not mean that the economy had entered deflation.

Feb 12, 2015

Bank of England to play down deflation fear with new forecasts

LONDON, Feb 12 (Reuters) – Bank of England chief Mark Carney
will probably say on Thursday that British inflation will soon
go negative, but the scale of its predicted bounceback might
make investors rethink how long interest rates will stay at a
record low.

A halving in global oil prices and last year’s strengthening
of the pound have pushed down inflation to its lowest level in
nearly 15 years at 0.5 percent, way below the BoE’s 2 percent
target.

Feb 11, 2015

BOJ’s Sato sees moderate recovery, nervous over debt

LONDON (Reuters) – Japan’s economy is likely to keep recovering at a modest pace, Bank of Japan policymaker Takehiro Sato said on Wednesday, but he said any doubts about the government’s fiscal policy could dampen the impact of central bank stimulus.

Sato, one of four BOJ board members who have opposed the bank’s 80 trillion yen ($665 billion) a year stimulus drive, said the biggest risk to Japan was that investors might demand a higher premium to hold its huge stockpile of government debt.

Feb 5, 2015

UK house prices jump unexpectedly in January – Halifax

LONDON, Feb 5 (Reuters) – British house prices jumped
unexpectedly last month, recording their biggest rise since May
2014, but mortgage lender Halifax said it still expected the
overall pace of house price rises to slow this year.

Halifax said that house prices rose 2.0 percent in January
from the month before, up from a 1.1 percent increase in
December and far outstripping the 0.1 percent average increase
forecast in a Reuters poll.

Feb 4, 2015

British think tank sees pressure to hike taxes after election

LONDON (Reuters) – Britain’s major political parties are likely to face heavy pressure to raise taxes to balance the budget after May’s election, contrary to their stated plans, a leading think tank said on Wednesday.

The Institute for Fiscal Studies, a non-partisan body whose analyses of Britain’s public finances are closely watched, said the fiscal tightening planned over the coming years was deeper than in any of 32 other advanced economies it had looked at.

Jan 27, 2015

British growth slows, but 2014 still fastest in seven years

LONDON (Reuters) – Britain’s economic growth slowed more than expected in the final three months of last year, but with annual growth still at its fastest since 2007 the data gave ammunition to both sides of the political divide heading into May’s election.

Tuesday’s data showed some loss of momentum. Growth in the third quarter fell to 0.5 percent from 0.7 percent in the third, slower than the 0.6 percent growth most private-sector economists had expected in a Reuters poll.

    • 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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