Annual June figure comes after new PM pledges to reduce cost of living and improve economy
UK inflation dropped by more than expected in June to 2.6%, in a boost for Andy Burnham’s plans to reduce the cost of living.
The new prime minister has pledged to bring down the cost of living to give households more disposable income and improve the outlook for the economy, announcing a winter VAT cut on electricity bills and lowering the cap on bus fares in England.
Continue reading...July update projects GDP growth of 1% this year, making UK the third fastest-growing economy in the G7
The International Monetary Fund (IMF) has upgraded its growth forecast for the UK, while leaving those for other G7 countries weaker or unchanged, amid hopes the economic impact of the Iran war may be less severe than feared.
In a July update of its World Economic Outlook, which was finalised before the latest outbreak of hostilities in the Middle East, the Washington-based organisation projected UK gross domestic product to grow by 1% this year – up 0.2 percentage points from its April forecast.
Continue reading...Country acts amid Iran war inflation pressures, but US Fed and Bank of England expected to hold rates
The Bank of Japan (BoJ) has raised interest rates to a 31-year high as it tries to dampen inflationary pressures created by the Iran war.
Policymakers in Tokyo raised the BoJ’s short-term policy rate by a quarter of one percentage point, to 1% from 0.75%, and warned that companies were passing on rising oil costs to each other at a “relatively fast pace”.
Continue reading...Reserve Bank of Australia decision on Tuesday comes after three consecutive cash rate hikes this year
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The Reserve Bank has warned it is ready to raise interest rates further despite leaving its official interest rate on hold at 4.35%.
The widely expected decision on Tuesday will bring little relief to mortgage holders, already strained by the RBA’s three consecutive rate hikes earlier in 2026.
Continue reading...European Central Bank increases main deposit rate to 2.25%, with two further rises expected by next spring
The European Central Bank has raised interest rates for the first time since 2023 in response to higher inflation caused by the war in Iran.
The ECB raised its main deposit rate from 2% to 2.25% in a move that financial markets expect to be the first of three rises by next spring.
Continue reading...Most economists believe the chronic undersupply of homes will eventually push prices higher once interest rates ease and the tax changes are priced in
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The government’s property tax changes have become one of the defining political issues of Labor’s second term, drawing fierce criticism from opponents who argue they represent an “assault on aspiration” that will destroy home values.
In the three weeks after the negative gearing and capital gains tax changes were revealed in the 12 May budget, housing data has begun to show how they may affect Australia’s property market. Here’s what the data shows, and what could happen next.
Continue reading...Buyers abandon auctions and Sydney, Melbourne and Canberra median house prices end May lower than they were at the end of 2025
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Home prices in Australia’s capital cities have begun to fall, with experts predicting the decline could last at least a year and wipe as much as 10% from values.
The median capital city home price fell in May, the first decline since January 2025, as high interest rates and inflation stretched buyer budgets, Cotality reported on Monday. Auction success hit a new low for the year.
Continue reading...Owner-occupier mortgage growth slowed under growing costs while investor loans grew by $42bn in the year to March, a 9.6% increase
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Property investor borrowing rose at its fastest rate in a decade in March, according to the Reserve Bank, despite higher interest rates and speculation about property tax changes.
Owner-occupier loan growth slowed under the weight of growing mortgage costs but investor lending is continuing its record surge.
Continue reading...Meanwhile treasurer says next week’s budget will save more than it spends. Follow today’s news live
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Jim Chalmers says next Tuesday’s budget will not extend the 26 cent fuel tax cut beyond June.
But with Australia “hostage” to the wild swings in global oil prices amid the ongoing US-Israel war on Iran, the treasurer said there was “a range of contingencies” prepared to help support households and the economy from any escalating damage as a result of the Middle East conflict.
The budget will be calibrated for the conditions, but it will also still be consistent with our ambitions.
The election began a year of delivery, and the budget will begin a year of more ambitious reform, reform which is made more not less, urgent by global inflation and global economic uncertainty.
Continue reading...Bank of England survey in March shows chief financial officers foresee 3.7% increase over coming year
Companies in the UK expect to raise their prices more rapidly over the coming months as the war in the Middle East drives up costs, Bank of England research shows.
The Bank’s regular survey of more than 2,000 chief financial officers conducted last month, after the Iran conflict began, shows they now expect to raise their prices by 3.7% over the coming year.
Continue reading...UK house price growth slowed in February as value of typical home rose 0.3% to £301,151
Halifax has warned that the US-Israel war on Iran could slow mortgage rate decreases this year, as it said that house price growth eased dramatically in February.
Halifax, which is part of Lloyds – Britain’s biggest mortgage lender – said the conflict in the Middle East was likely to affect global economies, stoke inflation and reduce the likely rate of interest rate cuts that influence borrowing costs for homebuyers.
Continue reading...Biggest house price increases in February come in smaller capital cities as buyers undeterred by interest rate hikes
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Hot competition for cheaper Australian homes has powered a relentless “up-crash” in prices despite rising interest rates, economists warn.
Desperate first home buyers have bid up the price of affordable properties as they face off against investors, who have borrowed big despite government warnings they could lose tax discounts and deductions.
Continue reading...Labour MPs may clamour for bolder spending, but – like their Tory and Reform counterparts – they ask for the unaffordable
Too many Labour MPs want it all, and no amount of pleading from the top of government about the depleted public finances seems to make a difference.
The mainly leftist MPs want all the wrongs of the last 15 years put right and quickly. Their next opportunity to demand more cash arrives when Rachel Reeves delivers her spring statement on 3 March.
Continue reading...Reserve Bank’s decision to leave cash rate on hold was widely expected and major banks predict no interest rates cut until 2026
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The Reserve Bank has left the official interest rate on hold, as it warned house prices and rents will rise in 2026 after a surprise rebound in inflation.
The RBA’s monetary policy board on Tuesday kept the cash rate at 3.6%, where it has sat since August. Economists and banks overwhelmingly expected no change.
Continue reading...Policymakers under pressure for rethink after price growth in UK remained at 3.8% in September
Has UK inflation peaked? The latest official figures showing price growth in the UK stayed at 3.8% in September seem to suggest so.
The statement cannot be made with absolute certainty yet but many economists reacted to the latest consumer prices index (CPI) data with a message that the only direction for inflation over the rest of the year was down.
Continue reading...Annual September rate confounds forecasts of a rise, as pace of food price growth slows for first time since March
UK inflation was unchanged last month at 3.8%, confounding expectations of a rise, in welcome news for the chancellor, Rachel Reeves, as she plans for her crucial budget next month.
The Office for National Statistics (ONS) said that inflation measured on the consumer prices index remained at the same level in September as in August and July.
Continue reading...Bank joins smaller competitors in changing interest-related restrictions on some accounts – despite RBA leaving interest rates unchanged in September
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Westpac is tightening conditions on its savings account for younger customers as growing numbers of banks make it harder to earn advertised interest rates on their deposits.
The bank has joined smaller competitors in changing interest-related restrictions on some accounts – despite the Reserve Bank of Australia leaving interest rates on hold in September.
Continue reading...Pressure on first home buyers heightens as investors target lower-priced homes and more affordable regions
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Property investors borrowed a record sum, nearly $130bn, to buy homes over the year to June, supported by interest rate cuts but squeezing out first-time buyers.
Banks made almost 200,000 new loans to landlords over the year, the most since 2022, while the number of new first-home mortgages slipped to 116,000.
Continue reading...NAB said it would wait 13 days to pass on the 0.25% cut to borrowers, while Westpac announced it would wait 14 days
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Mortgage rates will slide after the Reserve Bank announced a third interest rate cut of the year – but borrowers with some major banks may have to wait weeks for relief.
Lenders have lined up to reduce their rates by 0.25%, with 20 banks – including each of the big four – announcing on Tuesday that they will pass on the cuts but only two of them doing so immediately.
Continue reading...ONS data shows jobless rate climbing to highest rate since June 2021 with growth in average earnings slowing to 5%.
Unemployment climbed and wage growth slowed in the three months to May, according to official figures that will pressure the Bank of England to cut interest rates next month.
Data from the Office for National Statistics, released on Thursday, showed that Britain’s official unemployment rate rose to 4.7% in the three months to May, up 0.1% from April to reach the highest level since June 2021.
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