LONDON (Reuters) – British economic growth got back on track in the second quarter but the strength of the pound hurt manufacturers, putting the Bank of England in a tricky spot as it gets closer to raising interest rates.
The economy grew by 0.7 percent in the three months to June, the Office for National Statistics said on Tuesday, in line with forecasts and above the long-run average. It followed an unexpected slowdown to 0.4 percent in the first three months of 2015.
LONDON, July 28 (Reuters) – The Bank of England runs the
risk of sending mixed messages next week when it changes the way
it announces its monetary policy decisions, designed as part of
the Bank’s push for greater clarity.
On Aug. 6, the BoE will simultaneously publish its monthly
decision on interest rates, the breakdown of how its
policymakers voted along with a summary of their debate, and its
quarterly forecasts for Britain’s economy, including inflation.
LONDON, July 22 (Reuters) – A number of Bank of England
rate-setters are moving towards voting for the first increase in
borrowing costs in over eight years, adding to expectations of a
split among policymakers in August.
All nine members of the BoE’s Monetary Policy Committee
voted on July 8 to leave rates at a record low of 0.5 percent,
as they have done since January, minutes of the meeting showed
LONDON, July 15 (Reuters) – The Bank of England’s
policymakers look likely to end their united front and split on
whether to raise interest rates next month, even with the latest
data showing inflation at zero and a rise in unemployment.
Comments from top policymakers this week and stronger wage
growth have led some economists to see chances rising that there
will be higher rates later this year.
LONDON, July 15 (Reuters) – Britain’s unemployment rate rose
for the first time in more than two years, data showed on
Wednesday, but faster growth in earnings means the Bank of
England is likely to keep signalling an interest rate hike is
The Office for National Statistics said the unemployment
rate edged up to 5.6 percent in the three months to May as the
number of people in employment fell by 67,000, primarily because
of fewer part-time workers.
LONDON, July 14 (Reuters) – Bank of England Governor Mark
Carney said on Tuesday that the time for a first British
interest rate hike since the financial crisis was getting closer
as economic recovery gathers momentum.
Speaking to British lawmakers for the first time since May’s
national election, Carney said households should start to
prepare for higher borrowing costs, though the central bank
would only raise rates slowly.
LONDON, July 9 (Reuters) – Britain’s government said on
Friday it would remove obstacles to building new houses as it
tries to tackle a chronic shortage of homes and put its economy
on a sounder footing.
At the centre of a new programme to boost Britain’s poor
productivity record are powers for the government to step in and
draw up housing plans if local authorities fail to do so.
LONDON (Reuters) – The UK government will announce on Friday an overhaul of rules on how and where new houses can be built as it tries to address a chronic shortage of homes and put the economy on a sounder footing.
A new plan to boost Britain’s weak productivity will include powers for the government to step in and draw up housing plans if local authorities fail to do so. Town halls that drag their feet on planning decisions may be fined, the government said.
LONDON, July 9 (Reuters) – Britain will announce on Friday
an overhaul of rules on how and where new houses can be built as
it tries to address a chronic shortage of homes and put its
economy on a sounder footing.
A new plan to boost Britain’s weak productivity will include
powers for the government to step in and draw up housing plans
if local authorities fail to do so. Town halls that drag their
feet on planning decisions may be fined, the government said.
LONDON (Reuters) – Chancellor of the Exchequer George Osborne said on Thursday he was creating a new centre ground in the country’s politics with his plans to cut welfare and boost pay, burnishing his credentials to become the next prime minister.
Osborne used his freedom as a close ally of Prime Minister David Cameron to announce an overhaul of Britain’s tax and spending system on Wednesday in his first budget plan since the centre-right Conservative Party won elections in May.