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Nov 15, 2012

Shock drop in UK retail sales in Oct hits recovery hope

LONDON, Nov 15 (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

Nov 14, 2012

Britain stuck with high inflation, meagre growth

LONDON, Nov 14 (Reuters) – Britain faces years of meagre
economic growth coupled with rising prices, the Bank of England
warned on Wednesday, adding that its ability to numb the pain
was nearing its limit.

Governor Mervyn King left the door open for yet another cash
injection of bond buying as he presented the central bank’s
downbeat outlook. He said the economy may shrink again at the
end of this year, just one quarter after it exited recession.

Nov 13, 2012

BoE’s Cohrs: pushing banks too hard to lend will raise defaults

LONDON, Nov 13 (Reuters) – Pressuring British banks to lend
out more money will lead to a rise in defaults while
creditworthy firms and households are reluctant to borrow, a
Bank of England financial regulator said on Tuesday.

Michael Cohrs, a member of the central bank’s new Financial
Policy Committee which draws up regulation for the financial
system as a whole, said it was rational for companies and
households to reduce debt levels when the economy was weak.

Nov 8, 2012

Bank of England votes against another cash boost for now

LONDON (Reuters) – The Bank of England opted on Thursday not to pump more cash into the fragile economy, as policymakers pin their hopes on the bank’s new lending scheme and some worry about inflation.

The decision, which matched expectations, is likely to have been close, with the BoE’s Monetary Policy Committee having to weigh Britain’s surprisingly strong exit from recession in the third quarter against signs of renewed weakness since then.

Nov 8, 2012

Bank of England likely to opt against more stimulus in tight vote

LONDON, Nov 8 (Reuters) – The Bank of England is likely to
opt narrowly against another cash injection to support the
economy on Thursday despite a fragile recovery, as some
policymakers worry about inflation.

The central bank is due to announce its monthly policy
decision at 1200 GMT, and economists predict it will not top up
its 375 billion pound ($599 billion) programme of government
bond purchases and will also keep interest rates on hold.

Nov 6, 2012

Bank of England to put stimulus on hold in close vote

LONDON (Reuters) – The Bank of England is likely on Thursday to opt for a pause in bond purchases aimed at boosting the economy after Britain exited recession and some rate-setters voiced doubts about the policy’s bite.

The central bank has bought a total of 375 billion pounds- worth of British government bonds since the 2007-08 financial crisis, completing the latest round of purchases last week.

Nov 6, 2012

Slump in UK Sept industrial output dents recovery hopes

LONDON, Nov 6 (Reuters) – British industrial output fell
more sharply than expected in September, data showed on Tuesday,
reinforcing fears an incipient recovery will struggle to gather

Excluding a decline in June, due partly to an extra public
holiday, the 1.7 percent monthly fall was the biggest since
August 2009 and much bigger than the 0.6 percent decline
analysts had forecast.

Nov 5, 2012

Weak UK services suggests bumpy economic recovery

LONDON, Nov 5 (Reuters) – Business in Britain’s dominant
service sector grew at the slowest pace in almost two years in
October and optimism about the outlook waned, raising the risk
that fragile recovery will falter.

Combined with a deeper contraction in manufacturing,
Monday’s data raises the chances that the economy could shrink
again between October and December after surprisingly strong
expansion in the third quarter.

Nov 1, 2012

UK business lobby sees flat economy in 2012

LONDON (Reuters) – The Bank of England looks set to hold off further economic stimulus in November because the economy is likely to avoid an overall contraction in 2012, a leading business lobby said on Thursday.

The Confederation of British Industry (CBI) said, however, that the recovery will remain sluggish and fraught with risks as the unresolved euro zone debt crisis weighs on business sentiment and investment decisions.

Oct 30, 2012

UK retail sales jump boosts chances of recovery

LONDON, Oct 30 (Reuters) – British retail sales picked up
much more than forecast in October, a survey showed on Tuesday,
further increasing the chances that Britain’s economic recovery
will continue.

At the same time, the unexpectedly upbeat survey among
retailers added to views that the Bank of England will not
increase its monetary stimulus further next week.

    • About Olesya

      "Olesya Dmitracova joined Reuters as a graduate trainee. She has spent a year in the Reuters Moscow bureau covering general and political news in Russia and the CIS. Since 2007 she’s been based in London, first as an investment banking reporter and since 2009, covering humanitarian crises and corruption issues worldwide for AlertNet and TrustLaw websites run by the Thomson Reuters Foundation. Before joining Reuters, Olesya had worked for the BBC World Service and regional media in Britain."
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