The government has started looking for a new Bank of England boss to replace Mark Carney (pictured) when he steps down next year. The Canadian governor will have been in the post for six years when he leaves Threadneedle Street on January 31 2020. For the first time the government is using a recruitment to […]
A weekly account of the curious goings-on in the world of financial services A hostile climateOn the same day the Prudential Regulation Authority put out a policy statement on the financial risks of climate change and five London landmarks were ground to a halt by climate protesters, it was starting to feel like a bit […]
Trade tensions, rising debt levels and the threat of a mismanaged Brexit have all led the International Monetary Fund to cut its forecast for global growth to its joint lowest level since the financial crisis. The Times reports that the world growth estimate for 2019 is now 3.3 per cent, down from the 3.5 per […]
The Bank of England’s monetary policy committee has voted unanimously to keep the base rate at 0.75 per cent. The rate has stayed at this level since it was raised from 0.50 per cent in early August last year. The MPC, according to the minutes, believes that the economic outlook hinges “significantly” on Brexit, and is […]
Britain’s growth will continue to grow 1.2 per cent this year, chancellor Philip Hammond has announced today in his Spring Statement today. The Office for Budget Responsibility figures show growth in every year of its forecast. While it continues this year, the IMF and OECD both predict Britain to grow faster than Germany. The UK […]
The inflation rate coming it at 1.8 per cent, a two-year low, has fuelled talk in some quarters of the Bank of England potentially reversing its recent direction and cutting interest rates. Adding fuel to this is the fact that, despite the Monetary Policy Committee minutes that covered the last interest rate decision saying that policy […]
MPs on the Treasury committee have branded chancellor Philip Hammond’s aim to move from a budget deficit into a surplus by the mid-2020s as not credible anymore since austerity was relaxed slightly last year. Hammond is due to give his spring statement on March 13, but the MPs have said that the surplus target “should […]
The Bank of England has blamed the “fog of Brexit” for putting the brakes on the economy as it forecasts growth for 2019 to be the slowest in a decade. The Bank revised down the 1.7 per cent growth forecast it made in November to 1.2 per cent, making this the slowest rate of expansion […]
The Bank of England’s monetary policy committee has voted unanimously to keep the base rate at 0.75 per cent. The rate has stayed at this level since it was raised from 0.50 per cent in early August last year. The meeting minutes show that the committee believes that the softer growth seen both domestically and internationally […]
Royal Bank of Scotland is lining up a cut to the government’s stake in the bank by buying up to £1.4bn worth of shares from the Treasury. The government currently holds a just over 62 per cent stake in the bank. The Guardian reports that RBS is seeking shareholder approval to buy up to a […]
Analysis by the Trades Union Congress suggests that household debt has reached a new high of over £425bn. The TUC’s research – which includes student loans and are therefore higher than similar estimates from the Bank of England – says that non-mortgage debt rose £886 to a fresh peak of £15,385 per household in 2018, […]
While loans to British consumers have seen another month of growth, credit expansion has dipped to its slowest pace since 2015, latest Bank of England figures show. Unsecured lending growth dipped from 7.4 per cent in October to 7.1 per cent in November, suggesting a pre-Brexit brake on the economy could come to frution. The […]
British Steel could lapse into administration within days if an emergency government loan fails to materialise, according to reports. Sky News reports that British Steel – the second largest steel producer in Britain – is preparing for insolvency on Wednesday, with suggestions that it is becoming increasingly unlikely that funding will come through to safeguard […]
Backing a no deal Brexit would “knowingly damage” the economy, chancellor Philip Hammond will warn in a speech to business leaders today. Hammond will use the platform at the Confederation of British Industry to criticise those pushing a for a clean break with the EU, saying they would be doing deliberate damage to the UK […]
Investors might be able to take a risk-off approach The equity market bounce at the start of the year took many by surprise. The question is, does the rally have further to run in 2019, or should investors be using the bounce as an opportunity to take risk off the table? The answer lies in […]
The FCA has published a paper seeking views from firms, consumers and other interested parties on intergenerational fairness. The report seeks to identify the differences in the financial straits between baby boomers, generation X and millennials, and includes a focus on the housing market and property wealth. Money Marketing has looked at the reactions from experts to […]
The FCA is seeking views from firms, consumers and other interested parties on intergenerational fairness after releasing a paper on the topic. The report seeks to identify the differences in the financial straits between baby boomers, generation X and millennials, and includes a focus on the housing market and property wealth. The difficulties which face […]
Political noise from Washington is likely to increase in volume A recent visit to the US to meet fund managers, strategists and analysts left us reassured that, for now, the US economy is in decent shape. But we were not convinced market momentum would be sustained. The S&P reached a record high during our visit, […]
Data that shows the appetite for UK equities is back has left analysts and investors wondering whether the asset class has pulled through its Brexit slump. UK equity funds saw net retail sales of £114m in November, their first inflow of 2016. They had suffered £5.1bn outflows since the previous January, £3.8bn of which followed […]
From endless trade disputes to long drawn out speeches from unelected bureaucrats clinging desperately to power – there are some stark similarities between the Star Wars saga and the EU. But as Disney’s latest instalment cleans up at the box office, Prime Minister May has her own cabinet rogues to keep under control. Whether its […]
At the Conservative party conference last week, Theresa May announced she will trigger Article 50 by the end of March 2017 and that a Great Repeal Bill will be brought forward at the next Queen’s Speech. While some were calling for more time before pressing the big red Article 50 button (notably one Mr George […]
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Sign up Economic predictions for the coming year The crystal ball for the next few months appears particularly foggy. There are questions over how long the current economic cycle can last, along with no shortage of questions over politics and the path of interest rates. Currently, there are reasons to paint a pretty bleak picture – economic […]
Changes in the way long-term care is paid for was the dog that did not bark in Chancellor Philip Hammond’s first Autumn Statement. It failed to get even a mention, despite many telling us there is a crisis in long-term care for older people. There have been calls for tax subsidies for those who save […]
The UK will be living the consequences of Brexit for years to come – yet the rest of the world seems to have moved on. At least that is the conclusion you would draw when observing recent moves in global stock markets. That said, there is no getting away from the fact the global recovery […]