Policymakers vote 8-1 against back-to-back cuts in borrowing costs after inflation stayed above Bank target
The Bank of England has kept interest rates unchanged at 5% as it put its efforts to ease the pressure on household budgets on hold.
The Bank’s monetary policy committee (MPC) voted by a majority of eight to one against launching a back-to-back reduction in borrowing costs amid concerns over lingering inflationary pressures.
Continue reading...Amazon has told staff they must return five days a week – but experts don’t all agree that flexible working cuts output
Four years ago when the world of work was upended by the Covid pandemic, confident predictions were made that a permanent shift in remote working would follow the removal of lockdown restrictions.
Much has clearly changed since. Some of the earliest preachers of the brave new teleworking world – including the US tech companies Google and Microsoft – are among the most vocal to repent.
Continue reading...Trip to Moscow to review economy delayed indefinitely after protests it would ‘normalise relations with aggressor’
The International Monetary Fund (IMF) has indefinitely postponed a staff mission to Moscow this week to review the Russian economy for the first time since the invasion of Ukraine, after the move came under heavy criticism from several of Kyiv’s European allies.
After revelations in the Guardian of widespread condemnation, the IMF said it would spend more time gathering information for a “rigorous analysis”.
Continue reading...Annual rate in August unchanged, and hovering above Bank of England’s 2% target
The UK’s annual inflation rate rose by 2.2% in August, matching the increase in July, as lower petrol prices at the pump were offset by higher air fares.
Figures from the Office for National Statistics (ONS) show the government’s preferred measure of the cost of living remained steady, matching forecasts by City economists and hovering just above the Bank of England’s 2% target.
Continue reading...Protest letter sent to fund’s head over move to send staff to Moscow for first review since invasion of Ukraine
The International Monetary Fund (IMF) will send staff to Moscow next week to review the Russian economy for the first time since the invasion of Ukraine, in a move that has prompted anger and dismay across European capitals.
Officials of the Washington-based organisation will travel to the Russian capital and meet “stakeholders” before publishing an assessment of the economy and providing recommendations about how the Kremlin might improve its economic handling and tackle issues such as the climate crisis.
Continue reading...Pre-election slowdown continues in July despite economists predicting growth of 0.2%
The anticipated post-election bounceback in the UK economy failed to materialise as activity flatlined in July for a second month, , according to the latest official data.
The Office for National Statistics (ONS) said the pre-election stalling of activity in June was followed by another month in which gross domestic product remained unchanged.
Continue reading...Peers said they were raising a ‘big red flag’ and tough choices will be needed
The pressing risk of the national debt becoming unsustainable will force Britain into the unenviable choice of paying higher taxes or the state doing less, a House of Lords committee has warned.
A report by peers said tough decisions and a new set of rules for the public finances were needed in order to put debt – currently just under 100% of annual national income – on a decisive downward path.
Continue reading...‘For the first time since the cold war we must genuinely fear for our self-preservation,’ warns former ECB chief as he presents new report on European competitiveness
We also have worrying signs that the US jobs market is cooling.
The latest UK Report on Jobs from KPMG and REC shows that the UK labour market softened in August, with vacancies falling for both permanent and temporary staff.
“Recent Government warnings that the UK’s economy may weaken further before improving add to the overall sense of uncertainty, affecting recruitment plans. Firms holding back from hiring led to a sharp contraction in the number of people placed into permanent roles in August amid continued decline in demand, extending the downturn in the UK’s labour market.
“The news that while salaries rose last month it was at the weakest rate since March could help make the case for more rate cuts when the [Bank of England’s] Monetary Policy Committee meets to decide the future path of interest rates.
This reflects ongoing concerns in the job market, including falling job vacancies and more people claiming unemployment-related benefits, which reached its highest level since December 2021 according to the Office for National Statistics.
Continue reading...Employees have lost out on holiday pay worth £2bn, according to new trade union research
Workers across Britain have lost out on holiday pay worth £2bn, with more than a million people going without a single day of paid time off, according to new research.
With unions gathering in Brighton this weekend for the first TUC conference under a Labour administration for 15 years, the body revealed new research showing the extent to which workers are being denied holiday pay. Workers are entitled to 28 days paid leave for a typical five-day week.
Continue reading...The 2017 Grenfell Tower fire in London was the result of ‘decades of failure’ by central government, the public inquiry into the catastrophe has found. The Guardian’s John Harris looks at the findings of the report with the social affairs leader writer Susanna Rustin. And, as Labour continues to warn ‘things will get worse before they get better’, we are joined by the economists James Meadway and Ann Pettifor to discuss whether a painful period of austerity-lite is the only way through the storm
Continue reading...Office attendance in UK capital similar to levels in Toronto and Sydney, thinktank finds
Workers in London have been slower to return to the office than those in other global cities such as Paris and New York, a report has found.
London was near the bottom of the pack, with office attendance similar to levels in Toronto and Sydney, according to research by the Centre for Cities thinktank, which surveyed employees and employers in six big cities.
Continue reading...Finding new trade arrangements to boost growth will be hard given party has ruled out rejoining single market and customs union
Before a whistlestop European tour to Berlin and Paris, Keir Starmer promised to mend “the broken relationships left behind by the previous government” and drive forward UK economic growth.
Changing the tone with European leaders is the easy bit. Changing the substance – especially finding new arrangements to boost growth – is a much taller order.
Continue reading...Past Labour PMs – Blair, Wilson, Attlee – have tended to arrive in power accentuating the positive
Sir Keir Starmer could perhaps have timed it better. On the day that Oasis, the band that symbolised the mood of sunny optimism that swept Tony Blair to power in 1997, announced their reunion, the prime minister’s message to the nation was that things would get worse before they got better.
Politically, it is quite a gamble. There haven’t been all that many Labour governments in the past 125 years, but they have tended to arrive in power accentuating the positive. That was true of Blair in 1997 and true of Harold Wilson in 1964.
Continue reading...Business secretary Jonathan Reynolds says joining Asia-Pacific CPTPP bloc is a ‘real win’ for exporters, even though it will preclude the UK from EU membership
The business and trade secretary, Jonathan Reynolds, has signalled a new twin-track approach to UK trade policy, in which the Labour government will pursue closer ties with the European Union while at the same time seeking new global partnerships further afield.
Writing for the Observer online, Reynolds welcomes the UK’s imminent entry into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as a “real win” for British exporters.
Continue reading...French service sector drives growth but experts warn strong figures mask disappointing performance elsewhere
The Paris Olympics have provided a boost to the eurozone economy after a sharp rise in spending as athletes and spectators descended on the French capital for the summer sporting event.
Figures from a closely watched survey of businesses showed monthly French private sector output rose to its highest level in 17 months in August.
Continue reading...Inquiry into eight EU countries is latest chapter in hostility between Beijing and EU over trade
Chinese authorities have launched an anti-subsidy investigation into European dairy imports, in the latest sign of escalating trade tensions between Brussels and Beijing.
The announcement from China’s commerce ministry on Wednesday came a day after the European Commission revealed revised duties on Chinese electric vehicles as part of its examination into what it viewed as artificially cheap cars that posed a threat to jobs in Europe’s motor industry.
Continue reading...Chancellor insists she still has large black hole to fill despite stronger-than-expected growth in first half of 2024
Rachel Reeves is planning to raise taxes, cut spending and get tough on benefits in October’s budget amid Treasury alarm that the pickup in the economy has failed to improve the poor state of the public finances.
With the latest official set of borrowing figures out on Wednesday, the chancellor is insisting she will still have a substantial black hole to fill despite stronger than expected growth in the first half of 2024.
Raising more money from inheritance tax and capital gains tax.
Sticking to plans for a 1% increase in public spending even though it would involve cuts for some Whitehall departments.
Rejecting pressure to scrap the two-child benefit cap.
Changing the way debt is measured to exclude the Bank of England.
Continue reading...Spot price increases to $2,522.99, with record run meaning standard gold bar is worth more than $1m
Gold prices have hit a fresh high as increasing hopes of US interest rate cuts from the Federal Reserve prompted investors to buy more of the precious metal.
The spot price of gold rose to a record $2,522.99 (£1,941.69) on Tuesday morning, up 0.7% on the day. Gold bars generally weigh 400 troy ounces (12.4kg), so a standard gold bar is now worth more than $1m.
Continue reading...Bank officials signal readiness to start interest rate-cutting cycle to ease pressure on households and businesses
Kamala Harris’s hopes of victory in the looming US presidential election have been given a boost by mounting expectations that the US Federal Reserve will cut interest rates from as early as September.
As Democrats gather for the party’s national convention in Chicago starting on Monday, economists on Wall Street said the world’s most powerful central bank was poised to begin a cycle of interest rate cuts before the end of the year.
Continue reading...Figures from Rightmove show inquiries to estate agents since 1 August up 19% compared with a year ago
The first Bank of England rate cut in four years has triggered an immediate upturn in the UK property market, as cheaper mortgages prompt interest among buyers and drive up house prices.
Figures from the property website Rightmove show the number of potential buyers contacting estate agents about homes for sale since 1 August jumped by 19% compared with the same time a year ago. Contacts in July were up 11% on the previous year.
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