Uk Economy

BoE set to keep UK rate unchanged at 4.50% despite gloomy economic news

The Bank of England is set to keep UK interest rates unchanged Thursday even though the economy is barely growing and set for further uncertainty in light of the tariff policies being enacted by the Trump administration in the US. The nine-member Monetary Policy Committee is expected to keep the bank's main interest rate at 4.50%, given that inflation remains above target and set to go higher in the coming months, as firms are expected to raise prices as a result of a big increase in the minimum wage and higher payroll taxes. Inflation in the UK rose to a 10-month high of 3% in January further above the bank's target of 2%. And many economists think it could rise as high as 4% in the coming months. The rate-setting panel has reduced the bank's main rate from a 16-year high of 5.25% by a quarter of a percentage on three occasions since last August, most recently in February, after inflation fell from multi-decade highs of over 10%. If it pursues this gradual approach, then it would

BOE policymaker Dhingra says gradual rate cuts would be a drag on economy

In her first public comments since she and Catherine Mann voted for a half-point rate cut on Feb 6, Dhingra said consumer spending was likely to remain weak and inflationary pressures subdued

UK inflation unexpectedly jumps to 3%, reaching a 10-month high in Jan

Services inflation - a key gauge of price pressures for the central bank - stood at 5.0 per cent in January compared with 4.4 per cent in December, the ONS said

Bank of England cuts rates to 4.5%, sees higher inflation, weaker growth

Bank of England Governor Andrew Bailey said the BoE would be "monitoring the UK economy and global developments very closely and taking a gradual and careful approach to reducing rates further"

Debt market trends hint at cracks in UK's reserve currency: Rating agency

The trouble this time was largely pinned on shifts in global interest rate expectations. But bond market watchers have pointed to a notable change in UK market dynamics that seems to have taken root

UK home asking prices show biggest early-year rise since 2020: Rightmove

Britain's housing market gained some momentum last year on hopes that borrowing costs would continue their fall although slower-than-expected rate cuts sapped some demand

Britain's Treasury chief in China to revive economic, financial talks

Britain's Treasury chief is travelling to China this weekend in a bid to boost economic and financial cooperation between the countries, as the UK's Labour government seeks to reset strained ties with Beijing. Rachel Reeves will seek stability in the United Kingdom's relationship with China and aim to help grow Britain's lackluster economy, the Treasury said on Friday. She will travel to Beijing and Shanghai and meet with her Chinese government counterpart, Vice Premier He Lifeng. A focus of Reeves' trip is reviving the China-UK Economic and Financial Dialogue annual bilateral talks that have been suspended since 2019 due to the COVID-19 pandemic and deteriorating relations in recent years. The British side wants the dialogue to help bring down barriers that UK businesses face when looking to export or expand to China. The talks were shelved after ties soured following a series of spying allegations from both sides, China's support for Russia in the Ukraine war and a crackdown on

UK launches 'world's first' sanctions to crack down on illegal migration

The UK on Thursday announced the world's first new sanctions regime to combat people smuggling crime rings and block the illicit finance fuelling such operations as part of measures to crack down on illegal migration. The government said the new standalone sanctions are dedicated to targeting irregular migration and organised immigration crime, which will allow the authorities to target individuals and entities enabling dangerous journeys. The new sanctions regime is expected to come into force within the year as experts from across government work with law enforcement and operational Home Office colleagues to stem finance flows at their source and deter smugglers facilitating irregular migratory movements, including dangerous sea crossings across Europe. We must dismantle the crime gangs facilitating breaches of our borders. By crippling illicit finance rings allowing smugglers to traffic vulnerable people across Europe, we will deliver on our Plan for Change and secure UK borders,

UK's long-term borrowing costs jump to highest level since 1998. Here's why

The yield on 30-year British gilts rose sharply on Tuesday and again on Wednesday, outpacing increases for other governments' bonds and hitting its highest since August 1998 at 5.383 per cent

India, China to Germany and UK: How major economies performed in 2024

While India and US have optimistic outlooks going into 2025, Germany and UK may see sluggish growth

BoE keeps interest rates steady at 4.75%, but MPC members split on decision

Three of the BoE's nine-person Monetary Policy Committee - Deputy Governor Dave Ramsden and external members Swati Dhingra and Alan Taylor - voted for a quarter-point rate cut to 4.5 per cent

UK economy shrinks in Oct, suffers first back-to-back declines since 2020

Gross domestic product shrank 0.1 per cent month-on-month in October, as it did in September, the Office for National Statistics said

Worker shortages raise doubts over Britain's plan to build for growth

Britain has long lacked candidates to fill jobs, a problem made worse by the 2016 Brexit vote and Covid-19, with vacancies higher than their level before the pandemic

UK consumer confidence touches 4-month high in December: GfK survey

Monthly consumer confidence index from market research firm GfK rose to -17 in December from -18 in November, the highest reading since August

Bank of England set to stay in central bank slow lane, keep rates on hold

BoE has cut Bank Rate only twice from a 16-year peak, helping to make sterling the only currency from the Group of 10 leading economies that has not fallen against the US dollar in 2024

PM Keir Starmer plans reform of UK state in bid to counter criticism

Starmer's reset moment, including six 'milestones' designed to be tools to measure the government's progress, instead triggered more disquiet and confusion about his strategy

UK transport minister Louise Haigh quits in new blow to PM Starmer

In her resignation letter shared by Starmer's office early on Friday, Haigh said she was standing down as the issue 'will inevitably be a distraction from delivering on the work of this government'

British employers warn tax rise will hit investment, jobs, salary

"The rise in National Insurance and the stark lowering of the threshold caught us all off guard," CBI Chief Executive Rain Newton-Smith said as the organisation met for its annual conference

UK retail sales plunged more than expected before new govt's budget: ONS

A monthly rise in sales in September was also revised down to 0.1 per cent from a previous estimate of a 0.3 per cent gain

UK inflation rises by 2.3% in October, again more than BOE's expectation

The increase was the biggest month-to-month rise in the annual CPI rate since October 2022