The Bank of England has warned that continuing Brexit uncertainty and the prospect of further delay until the summer is serving as a handbrake on the economy, as it left interest rates on hold. Amid signs that the political turmoil is increasingly taking its toll on business investment decisions, paving the way for weaker economic growth in future, the Bank’s nine-member monetary policy committee (MPC) voted unanimously to leave interest rates at 0.75%. It said there were increasing risks for the economy emerging, with parliament at an impasse, while warning that further delay would continue the damage to the economy for longer. The MPC said there was the “possibility of further cliff-edge uncertainties that could have a significant effect on spending as any new deadline approached”, in a comment that comes hours after Theresa May said she would seek an extension in the Article 50 process until the summer. Threadneedle Street said more companies were stockpiling goods … [Read more...] about Bank of England holds interest rates at 0.75% amid Brexit chaos
Bank of england
Bank of England keeps rates on hold as businesses brace for no-deal…
LONDON, (Reuters) - The Bank of England kept interest rates steady on Thursday and said most businesses felt as ready as they could be for a no-deal Brexit that would likely hammer economic growth and jobs. FILE PHOTO: City workers walk past the Bank of England in the City of London, Britain, March 29, 2016. REUTERS/Toby Melville/File Photo/File Photo The BoE said its nine rate-setters voted unanimously to keep interest rates on hold at 0.75 percent, just days before the world’s fifth-biggest economy could leave the European Union without a deal to smooth its way. “The economic outlook will continue to depend significantly on the nature and timing of EU withdrawal,” the BoE said. The central bank again said rates could move in either direction if there is a no-deal Brexit, as a sharp fall in the value of the pound could generate inflation pressure in addition to the broader economic shock. Separately, the BoE published a survey of just under 300 … [Read more...] about Bank of England keeps rates on hold as businesses brace for no-deal…
No deal worries grip pound ahead of final Bank of England update before scheduled departure
21 March 2019 • 8:57am Sterling extends slide versus euro - see the latest currency movements on our Markets Hub No deal worries rise on markets; pound drops 0.5pc vs euro to €1.1546 Bank of England's final decision before March 29 at 12pm Brexit 'fatigue' not holding back shoppers, Next says Fixing Kingfisher will take more than a quick DIY makeover Sign up for our weekly Economic Intelligence newsletter here To continue reading this article Start your free trial of Premium Access all Premium articles Subscriber-only events Cancel any time Free for 30 days then only £2 per week Try Premium Access one Premium article per week Register for free Register for free to continue reading this article Register Or unlock all Premium articles, free for 30 days Start trial Already have an account? Login Want to learn more? View all subscriptions … [Read more...] about No deal worries grip pound ahead of final Bank of England update before scheduled departure
Inflation rises but remains below Bank of England target
News / Business by Press Association 20/03/2019, 9:52 am Send us a story Sign up to our Daily newsletter Inflation rose in February, but remained below the Bank of England’s target as rising prices for food and alcohol were offset by weaker growth in clothing and footwear. Figures from the Office for National Statistics (ONS) show the Consumer Prices Index (CPI) rose to 1.9% last month. Economists had expected inflation to hold steady at 1.8%, after the January rate came in below the Bank of England’s 2% target for the first time in two years. CPI including owner-occupiers’ housing costs (CPIH) – the ONS’s preferred measure of inflation was unchanged at 1.8% in February. Mike Hardie, head of inflation at the ONS, said: “The rate of inflation is stable, with a modest rise in food as well as alcohol and tobacco offset by clothing and footwear prices rising by less than they did a year ago.” The price of food was up 0.4% … [Read more...] about Inflation rises but remains below Bank of England target
Bank of England may hike rates in the summer after job figures soar
The Bank of England could raise rates this summer after record strength for the UK jobs market, experts said on Tuesday. Unemployment is at its lowest since the Seventies, at just 3.9%, while the economy added 222,000 jobs in the quarter to January, the Office for National Statistics said. Pay growth is up 3.4% on the year, boosting real incomes as inflation recedes. Despite low growth, employment is surging as firms shy away from investment and factors such as a higher female retirement age push the number of women in the workforce to an all-time high. ING Bank economist James Knightley said: “If the Government gets a long Brexit extension, a Bank of England rate hike is clearly on the table for the summer.” Mike Jakeman, senior economist at PwC, said: “The UK labour market has continued to defy any Brexit-related uncertainty.” Other indicators are mixed as the ONS also said the number of people claiming jobseeker’s allowance hit … [Read more...] about Bank of England may hike rates in the summer after job figures soar