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For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails The Bank of England has announced an expansion of its emergency gilt-buying programme, launched after chancellor Kwasi Kwarteng’s mini-Budget sparked market turmoil which left the UK on the brink of a financial crisis. The Bank said […] More
For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails The pound has plummeted to its lowest level against the dollar in history, falling more than 4 per cent, as the markets responded to the announcement of Britain’s […] More
For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails I can’t bear the idea of more people falling into poverty. It is disgusting that in a rich country we have loads of children on the breadline. This […] More
For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Business leaders have called on the new prime minister to urgently tackle the economic crisis as new estimates suggest the looming recession will last longer than forecast. “Action […] More
For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Britons face an even bigger hit to livings standards and a longer recession than the Bank of England predicts as Russia further threatens gas supplies to Europe, economists […] More
The pound rose against the dollar after Boris Johnson announced he is to be replaced as prime minister. Sterling gained more than 0.4 per cent to $1.2 as traders priced in the prospect of an end to months of chaos under Mr Johnson’s leadership. He will remain in place while the Conservative Party selects a new leader.As markets reacted to the news, sterling regained some of the ground it lost this week but remains more than 10 per cent down against the US currency.The pound hit a two-year low against the dollar on Tuesday amid growing fears for the future of Britain’s economy.The dollar has strengthened in response to a series of large interest rate increases by the US Federal Reserve.RecommendedA weak pound is serving to push up prices for goods that the UK imports, such as energy, food and manufactured products.Consumer price inflation hit 9.1 per cent in May and is expected to surge to 11 per cent later this year, meaning households face big falls in living standards as wages fail to keep up with the rising cost of essential goods.While new leadership of the country promises to bring some measure of political stability, the new prime minister will still face a long list of economic problems. Consumer confidence has hit its lowest level on record according to a long-running survey by Growth from Knowledge (GfK), while car sales fell to their lowest level for any June since 1996. The construction industry is also slowing down, new industry figures show.The Bank of England said on Tuesday that the prospects for the UK economy had “deteriorated materially” since Russia invaded Ukraine. More
Britain’s economy is set to grind to a halt next year as the country records zero growth and falls behind all other major developed nations except Russia, according to new analysis.The Organisation for Economic Co-operation and Development (OECD) forecasts that the UK will continue to be plagued by high inflation and will not grow at all next year.The international body warned that war in Ukraine had had immediately slowed the global economic recovery from Covid-19 and resulted in higher inflation.Europe has been impacted most severely because of the continent’s heavy reliance on energy imports, the OECD said, adding that the war had again underlined the need for energy security and an acceleration of the green transition.It slashed its forcecast for global growth to 2.8 per cent next year, down sharply from predictions made in October.“Countries worldwide are being hit by higher commodity prices, which add to inflationary pressures and curb real incomes and spending, dampening the recovery,” OECD Secretary-General Mathias Cormann said during a presentation on Wednesday. “This slowdown is directly attributable to Russia’s unprovoked and unjustifiable war of aggression, which is causing lower real incomes, lower growth and fewer job opportunities worldwide.”The euro area economy is expected to expand by just 1.6 per cent and the US by 1.2 per cent. UK growth is estimated to be zero, in line with Bank of England estimates. More
Workers should “think and reflect” before asking for pay rises, £575,000-a-year Bank of England chief Andrew Bailey told MPs on Monday.The governor said high earners in particular should consider the impact of inflation before seeking salary top-ups as prices rises.It comes as the Office for National Statistics (ONS) is later this week expected to confirm inflation has passed eight per cent, while the Bank of England itself has warned it could is likely to peak at 10.25 per cent by the end of the year.Mr Bailey told MPs on the Treasury select committee: “I spoke in an interview about this. I do think people, particularly people who are on higher earnings, should think and reflect on asking for high wage increases. More
