Page 7 - Uk Economy

British PM removes Kwarteng as finance minister amid row over economic plan

Truss had been under intense pressure to scrap some of the £43 billion ($48 billion) in unfunded tax cuts that roiled financial markets and led the BoE to step in to prevent a wider economic crisis

India to become world's third-largest economy by FY28, says IMF

Projected to grow bigger than Japan at $5.36 trillion

Recession fears mount as UK GDP falls 0.3% in Aug after 0.1% growth in July

The UK's gross domestic product (GDP) declined by 0.3 per cent in August, after growth of 0.1 per cent in July, the Office for National Statistics (ONS) has said

UK economy shrank in August, now on brink of recession: Report

Weakness in manufacturing and maintenance work in North Sea oil and gas fields contributed to a 0.3% fall in GDP from July, and the report also showed how a jump in inflation was hitting consumers

Bank of England expands emergency effort to stabilise financial markets

The Bank of England on Tuesday expanded its emergency effort to quash upheaval on financial markets unleashed by the government's plan to slash taxes, saying fluctuations in bond prices posed a material risk to Britain's fiscal stability. The UK central bank said it will now buy inflation-linked securities which offer protection from inflation as well as conventional government bonds as it seeks to restore orderly conditions in the market. Purchases will total up to 10 billion pounds (USD 11 billion) a day split evenly between both types of bonds, and the program will end Friday as originally planned, the bank said in a statement. Analysts say pension funds lobbied the central bank to extend the programme by two weeks, but Bank of England Governor Andrew Bailey stuck to the timeline in an appearance at the annual meeting of the Institute of International Finance in Washington. He said portfolio managers have three days to rebalance their positions. The bank broadened the program

UK shows labour market slowdown with recession concerns rising: Survey

As a result, vacancies and the number of people placed in roles both rose at the slowest pace in more than a year and a half

Fitch Ratings cuts UK's credit outlook to negative on fiscal risk

The UK's credit outlook was lowered to negative from stable by Fitch Ratings, which cited risk the government's new growth plan could increase the nation's fiscal deficit

British PM Liz Truss pledges to get country through 'stormy days'

British Prime Minister Liz Truss on Wednesday promised to get the country through "stormy days", as she launched a blistering attack on the "anti-growth coalition" trying to hold back her pro-growth agenda. In her speech to the Tory conference, which has been marked by U-turns and deep internal division, Truss admitted that the policies of her government would cause "disruption". At the same time, she said "the status quo is not an option" and "we must stay the course". "I have fought to get where I am today," the 47-year-old prime minister said, highlighting how the barriers she had faced as a woman "made me angry and it made me determined". Her 35-minute speech came against a backdrop of financial and political turmoil following the government's mini-budget last month. Her address was briefly interrupted by environmental protesters from Greenpeace, holding up a sign reading "who voted for this". Truss acknowledged "these are stormy days", citing the global economic crisis caused

Mishandled tax-cut announcement, acknowledges British PM Liz Truss

Traders drove to the pound to a record low in the aftermath of Kwarteng's fiscal statement, govt borrowing costs soared and the Bank of England to intervene to prevent a meltdown in the gilt market

UK PM Liz Truss says tax cut was a right thing, will not change course

"We had to take urgent action to get our economy growing and that means taking controversial and difficult decisions," Truss said.

Rishi Sunak supporters speak out as UK economy spirals under Liz Truss

The supporters of Rishi Sunak in the Conservative Party leadership race, which concluded earlier this month with opponent Liz Truss as British Prime Minister, are increasingly speaking out to point out that the Indian-origin former Chancellor had warned against much of economic turmoil unleashed by the new incumbent at 10 Downing Street. While Sunak himself has remained conspicuously silent, his backers within the governing party and also more neutral sections of the media have been highlighting how so-called Trussonomics of tax cuts and higher borrowing has spooked the markets worldwide and sent the Pound Sterling tumbling against the dollar. Come back Rishi Sunak, all is forgiven, reads an editorial in The Daily Telegraph' on Tuesday. During the Tory leadership contest, the former Chancellor warned that Liz Truss' plans to borrow to fund tax cuts were dangerous' and risked making everything worse'. And, lo, his prophecy, dismissed as doomsterism at the time, has already come to ..

Pound stabilises but turmoil in stock markets continues for UK economy

The British pound stabilised in Asian trading on Tuesday after plunging to a record low a day earlier, as the Bank of England and the British government tried to soothe markets nervous about a volatile UK economy. The instability began to have real-world impacts, with several British mortgage lenders withdrawing deals amid concern that interest rates may soon rise sharply. The pound was trading at around $1.08 on Tuesday morning. On Monday it plunged to $1.0373, the lowest since the decimalisation of the currency in 1971, on concerns that tax cuts announced Friday by Treasury chief Kwasi Kwarteng would swell government debt and fuel further inflation. Late Monday the central bank said it was closely monitoring" the markets and would not hesitate to boost interest rates when it next meets in November to curb inflation that is running at 9.9%. The UK Treasury also sought to reassure markets, saying it would set out a medium-term fiscal plan on Nov 23, alongside an economic forecast b

Sterling tumbles nearly 5% to all-time low on tax reforms, shows data

The currency dived as much as 4.85 per cent to an unprecedented $1.0327, extending a 3.61 per cent dive from Friday, when finance minister Kwasi Kwarteng unleashed historic tax cuts

Euro, sterling plunge on dour business activity data, UK mini-budget

Sterling was set for its biggest weekly decline against the U.S. dollar in two years after it touched a fresh 37-year low of $1.1022. The pound was last down 1.9% at $1.1049.

UK scraps corporation tax hike, lifts cap on banker bonus to boost economy

The UK government on Friday scrapped a corporate tax hike and lifted a cap on bankers' bonuses in a contentious bid to boost the faltering economy. Treasury chief Kwasi Kwarteng made the announcement at Parliament as he presented a mini-budget to lawmakers. The U.K. government is expected to publish an emergency budget statement Friday outlining how it plans to slash taxes, tame soaring inflation and boost economic growth as a recession looms on the horizon. Treasury chief Kwasi Kwarteng's mini-budget, to be presented to lawmakers, is expected to scrap a planned increase in corporation tax. Prime Minister Liz Truss, who became the U.K.'s leader less than three weeks ago, has repeatedly stressed that her Conservative government's core mission is lowering taxes to drive economic growth. She declared this week that she is ready to make unpopular decisions such as boosting bankers' bonuses to attract jobs and investment. The Institute for Fiscal Studies predicts that even though Frida

UK PM Liz Truss says she'll slash taxes despite economic crisis

UK Prime Minister Liz Truss said Tuesday that she's ready to make unpopular decisions such as boosting bonuses for wealthy bankers in order to get the country's sluggish economy growing. Speaking before an emergency government budget statement on Friday, Truss said tax cuts were key to spurring economic growth, even though they benefit the wealthiest more than the poorest. We do have to take difficult decisions to get our economy right, Truss said. We have to look at our tax rates. So corporation tax needs to be competitive with other countries so that we can attract that investment. Truss, who has been prime minister for just two weeks a period overshadowed by the death of Queen Elizabeth II faces immediate pressure to deliver on her promises to tackle a cost-of-living crisis walloping the UK and an economy heading into a potentially lengthy recession. She has already announced a cap on household energy bills that means average costs for heating and electricity will be no more t

Global race to hike interest rates tilts economies towards recession

BofA sees UK and euro area falling into recession in the fourth quarter as surging energy costs take their toll on economies this winter

Fitch cuts India FY23 GDP growth forecast to 7%; world GDP growth at 2.4%

At a more macro level, Fitch now expects world GDP to grow by 2.4 per cent in 2022 - revised down by 0.5 percentage points (ppt) since the June assessment

UK unemployment hits lowest since 1974 but jobs boom is fading

However, the fall was not a sign of health in Britain's economy which is at risk of a recession

Cost of living in UK: Why PM Liz Truss' low-tax strategy won't work

Cost of living: why Liz Truss' low-tax strategy won't work