LONDON (Reuters) – Gilts nudged down on Tuesday on nervousness about what public borrowing target finance minister George Osborne will set in a half-yearly update to parliament on Wednesday.
Osborne may have to predict higher borrowing this fiscal year as a stagnant economy plays havoc with his original plan to largely eliminate Britain’s underlying budget deficit before the next election in 2015.
LONDON (Reuters) – British banks and building societies drew down 4.36 billion pounds ($7.0 billion) from a Bank of England program to boost lending in its first two months, in what analysts said was a moderately encouraging start.
Net lending by the banks involved rose by only 496 million pounds, but the BoE’s executive director for markets, Paul Fisher, said it was too early to use Monday’s data as a guide to the scheme’s success – a view largely shared by economists.
LONDON (Reuters) – The Bank of England’s outgoing governor Mervyn King underlined on Tuesday the uphill task his successor faces, saying the bank might have to buy even more government bonds to help drag Britain’s economy back to health.
Finance minister George Osborne delivered a shock on Monday by appointing Canada’s central bank head Mark Carney to be the first non-Briton to head the BoE, just over a week before he lays out the government’s latest budget plans.
LONDON (Reuters) – Spending at the London Olympics fuelled Britain’s strongest quarterly economic growth in five years between July and September, although that strength is unlikely to be sustained.
Tuesday’s figures, confirming that Britain has come out of recession, will buoy Chancellor George Osborne a week before he is due to deliver his half-yearly budget statement.
LONDON (Reuters) – Bank of England policymaker David Miles said on Friday he would have backed a much bigger increase in monetary stimulus this month if the government had not announced plans to take a cash surplus of over 35 billion pounds from the central bank.
The Bank agreed this month to a finance ministry request that it return the interest paid on 375 billion pounds of government bonds it has bought as part of its quantitative easing policy.
LONDON (Reuters) – Britain borrowed much more than expected in October, making Chancellor George Osborne’s bid to reduce the deficit and shunt the economy away from potential stagnation much harder to achieve.
The numbers are the last figures to be released before Osborne presents his twice-yearly fiscal update on December 5, and — after a positive surprise in September — extend the borrowing overshoots seen for most of the tax year.
LONDON, Nov 21 (Reuters) – Britain borrowed much more than
expected in October, making finance minister George Osborne’s
bid to reduce the deficit and shunt the economy away from
potential stagnation much harder to achieve.
The numbers are the last figures to be released before
Osborne presents his twice-yearly fiscal update on Dec. 5, and
– after a positive surprise in September — extend the
borrowing overshoots seen for most of the tax year.
LONDON (Reuters) – Britain’s poor productivity means further Bank of England economic stimulus would not be able to generate growth without stoking excess inflation, BoE policymaker Martin Weale said on Tuesday.
Earlier this month, the BoE’s Monetary Policy Committee voted not to extend the central bank’s 375 billion pound ($597 billion) asset purchase program, and last week BoE Governor Mervyn King said this was largely driven by an above-target inflation outlook.
LONDON, Nov 15 (Reuters) – UK retail sales fell in October
as shoppers bought less food and clothing, puncturing a consumer
spending revival that policymakers hoped would kick-start the
economy heading into 2013.
Sales volumes fell 0.8 percent on the month for an annual
rise of just 0.6 percent, the Office for National Statistics
said on Thursday. Both numbers were the weakest since April and
much worse than forecast, and sent sterling lower against the
dollar and the euro.
LONDON (Reuters) – British retail sales posted a surprise fall in October as shoppers cut back on food and clothing purchases, reducing the chances consumers will boost the economy in the final quarter.
Sales volumes including automotive fuel fell 0.8 percent on the month to give an annual rise of 0.6 percent, the Office for National Statistics said on Thursday. Both numbers were the weakest since April and worse than economists’ consensus forecasts.