Steaming US jobs market raises risk of another jumbo Fed rate hike August 7, 2022 The US jobs market is still steaming despite the world’s biggest economy wobbling under the weight of soaring inflation and higher interest rates, figures published last week showed. America added 528,000 jobs in July, pushing the unemployment rate down to 3.5 per cent, below pre Covid-19 levels, according to data from the US Labor Department. [...]
Week ahead: City braces for soft economy data and US inflation figures August 7, 2022 Top of City traders’ minds this week will be whether fresh GDP figures reveal the UK is already in the early stages of the drawn out recession the Bank of England forecast last week. Despite the economic doom, London’s FTSE 100 was broadly stable, edging 0.16 per cent lower to close the week at 7,439.74 [...]
A technical recession: How bad will it be? August 7, 2022 It is no surprise that US GDP growth is declining given the slowdown in consumer spending and domestic production recently. However, markets seem fraught with headline risk with the term ‘technical recession’ floating around. Analysts have pointed out the looming risk of a recession given the central bank’s aggressive tightening cycle while Fed chair Powell [...]
Half of all Brits risks falling into fuel poverty before the end of this year in harshest economic climate ever August 6, 2022 UK adults say the current economic climate is the harshest they have experienced, with half of all Brits either unable or soon to be unable to pay all of their bills. Millions of Brits are concerned about the months ahead as 47 per cent said they are not confident in their ability to pay their [...]
This week’s rate rise: Brits face immediate jump in interest payments of £1.67bn August 6, 2022 With the Bank of England Monetary Policy Committee confirming its base rate will rise by 0.5 per cent to 1.75 per cent, UK households face an immediate increase in interest payments of £1.67bn. UK households are currently paying £24.1 billion annually in interest payments on floating rate debt that are likely to be immediately impacted by [...]
Truss warns Bank against ‘talking Britain into a recession’ August 6, 2022 Liz Truss ramped up her criticism of the Bank of England last night as she warned policymakers of “talking Britain into a recession”.
Analysis: Historic day in the Bank of England’s 25 years of independence August 4, 2022 Today was one for the history books. The biggest jump in interest rates since the Bank of England was made independent 25 years ago. A looming recession similar in length to the financial crisis. The first time the Bank has raised rates while forecasting a protracted slump in recent memory. It is a lot to [...]
More businesses to go bust after today’s rate rise as £2bn is added to borrowing costs overnight August 4, 2022 With the Bank of England Monetary Policy Committee increasing its base rate by another 0.5 per cent to 1.75 per cent, UK businesses face an immediate increase in interest payments of more than £2bn. Analysis of Bank of England data shows UK businesses are currently paying £14bn annually in interest payments on their £409bn in floating rate [...]
More jumbo Bank of England rate hikes on a knife edge if UK tips into long recession August 4, 2022 More super-sized rate hikes in the coming months from the Bank of England are on a knife edge if the economy slumps into a prolonged recession, City economists are betting. Consumers and businesses may struggle to absorb further 50 basis point rate rises, likely prompting the Bank to slowdown its rate hike cycle, experts said [...]
D-Day in the City: Bank of England set to make history today by raising interest rates by record 50bps August 4, 2022 Today the Bank of England could make history by raising interest rates by 50bps for the first time since the Monetary Policy Committee was set up back in 1997. In June, the vote was a split decision, and it is quite likely that this one could be too. Then, three members of the MPC voted [...]