UK Economics Correspondent, London
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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.

Jun 11, 2014

UK plans to make currency-rigging a crime but rejects EU rules

LONDON, June 11 (Reuters) – British finance minister George
Osborne will reject European Union plans to outlaw currency
market manipulation on Thursday and instead set out his own
proposals to make rigging exchange rates a criminal offence.

EU laws taking effect in 2016 will make it a criminal
offence with a four-year jail term to rig key prices in a wide
range of financial markets.

Jun 11, 2014

UK’s housing upturn not like booms of the past: BoE’s Broadment

LONDON (Reuters) – Britain’s housing market upturn bears little resemblance to the debt-fueled 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.

Jun 11, 2014

Tougher FX rules in spotlight as UK’s Osborne and Carney speak

LONDON, June 11 (Reuters) – Tougher rules for the world’s
biggest currency trading hub – including potential new ciminal
sanctions – are likely to be high on the agenda when Britain’s
finance minister and central bank chief address London’s
financial community on Thursday.

Finance minister George Osborne said last week he wanted to
strengthen the integrity of London’s financial markets in
response to an investigation into the possible manipulation of
daily foreign exchange benchmarks.

Jun 10, 2014

UK industrial output growth quickens in April, recovery broadens out

LONDON (Reuters) – British industry enjoyed its strongest annual growth in over three years in April, in a further sign that the country’s rapid economic expansion is becoming less reliant on consumer demand.

Industrial output grew 3.0 percent, beating forecasts to record its biggest annual rise since January 2011, and in the three months to April it achieved its fastest pace of growth since June 2010, official data showed on Tuesday.

Jun 9, 2014

Strong data could prompt earlier UK rate rise – BoE’s McCafferty

LONDON, June 9 (Reuters) – The Bank of England is getting
closer to raising interest rates, and data over the summer and
autumn will play a critical role in determining the exact
timing, BoE policymaker Ian McCafferty said on Monday.

BoE forecasts last month showed that a rate rise as late as
the second quarter of 2015 would be enough for the central bank
to meet its inflation target, but McCafferty’s comments indicate
that he would consider an earlier move under some circumstances.

    • 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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