Yellen: Fed will drop the word “patient” before it hikes interest rates February 24, 2015 The US Federal Reserve's rate-setting committee will lose patience before it hikes interest rates, promised Fed boss Janet Yellen today – although she remained cagey about when that would happen. In prepared remarks to the Senate Banking Committee, she suggested there is no "given point" at which the Federal Open Markets Committee (FOMC) will decide [...]
The UK economy according to the OECD in six charts February 24, 2015 Andy Haldane, the Bank of England's chief economist, said last year that the economy "appears to be writhing in both agony and ecstasy." While the economy was growing at a faster rate that most of its rich counterparts, most people weren't benefiting from this because real wages were falling, and productivity, or output per hour work, [...]
Grocery price inflation hits four-year low February 19, 2015 PRICE inflation for everyday items across Europe has hit its lowest level since 2010 after falling for a fifth quarter in a row, according to figures released today. Sales of fast moving consumer goods (FMCG), which includes everything from toiletries to fizzy drinks, rose 3.1 per cent year-on-year in the fourth quarter of 2014. This [...]
Bigger pay packets give pound a lift as sterling hits seven-year high against the euro February 18, 2015 Sterling soared to a seven-year high against the euro yesterday, pushed up by record jobs figures and rising wages, with some investors expecting a Bank of England rate hike to come sooner than had been expected. The UK’s employment level jumped to an equal record high of 73.2 per cent at the end of [...]
Federal Reserve remains wary of interest rate hike February 18, 2015 GOLD, PLATINUM and emerging currencies were buoyed last night after minutes of January’s Federal Reserve meeting revealed the majority of the committee remain wary of hiking rates too soon and hampering growth in the US economy. The minutes revealed the group was less unified on its strategy for when it will eventually raise interest rates [...]
Federal Reserve cautious of raising interest rates against backdrop of economic growth February 18, 2015 The Federal Reserve’s policy committee reaffirmed its cautious approach to raising interest rates after voting in unison against the measure in January. Minutes from the January meeting reveal that the majority of the committee were wary of hiking rates too soon and hampering growth in the US economy. However, the group was less unified [...]
Sterling hits new seven-year high against Euro following hints of interest rate hike February 18, 2015 The UK’s pound jumped more than one per cent against the euro today to €1.36, reaching its strongest level since January 2008 after the Bank of England hinted it could lower interest rates in the next few months. The seven-year high for sterling against the eurozone currency came after minutes from the Bank [...]
Chinese New Year: How the goat could bring some prosperity to China’s struggling economy February 18, 2015 The year of the horse didn't work out too well for China. Growth slowed to its lowest point in two decades, while an over-investment in construction has resulted in too much property relative to demand. The country's leaders have attempted to spur growth on again, with the People's Bank of China cutting interest [...]
Bank of England minutes: MPC unanimously voted to hold interest rates February 18, 2015 The Bank of England's monetary policy committee (MPC) voted unanimously to hold the interest rate at 0.5 per cent when it met last, despite hints it could be lowered in the next few months. Minutes of the MPC's meeting in early February showed the committee's hawks – Martin Weale and Ian McCafferty, who have both [...]
Plunging inflation may knock deficit reduction February 17, 2015 Inflation fell to a record low in January, giving a welcome boost to hard-pressed households – but a group of economists warned the drop will harm the government’s finances, because tax receipts rise when prices go up. Prices rose by just 0.3 per cent in the 12 months to January, the Office for National Statistics said [...]