UK bond market rallies at sharpest pace in Europe amid interest rate hopes
1 year, 1 month ago

UK bond market rallies at sharpest pace in Europe amid interest rate hopes

The Telegraph  

The Government’s cost of short-term borrowing has fallen at the fastest pace in Europe today after the Bank of England’s chief economist raised hopes of interest rate cuts. The yield on two-year UK gilts, which are sensitive to moves in the outlook for interest rates, has dropped by eight basis points today to 4.61pc, its lowest level since June and well ahead of comparative EU economies. The rally in bond prices, which move inversely to yields, comes after Huw Pill said investors were not “unreasonable” to predict a rate cut next summer in the clearest signal yet that the Bank of England is near or at the peak of its cycle of borrowing cost increases. The yield on benchmark 10-year UK gilts has also dropped more than any other comparable European economy by seven basis points today to below 4.3pc.

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Bank of England HOLDS interest rates despite UK economy stalling after Labour's Budget raid - with fears over resurgent inflation
Trending News
5 days, 5 hours ago

Bank of England HOLDS interest rates despite UK economy stalling after Labour's Budget raid - with fears over resurgent inflation

Daily Mail  

The Bank of England kept interest rates on hold today despite mounting alarm at the stalling economy. Interest rates, which influence how much banks charge for loans and mortgages, are used as a tool by the central bank to keep inflation at its 2 per cent target level. Most economists had thought the latest data, and the prospect of price …

UK interest rates to fall more slowly than expected after Budget – OECD
2 weeks, 6 days ago

UK interest rates to fall more slowly than expected after Budget – OECD

The Independent  

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 Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy UK interest rates will fall …

Bank of England cuts UK interest rates again despite modest budget-related inflation spike
1 month, 2 weeks ago

Bank of England cuts UK interest rates again despite modest budget-related inflation spike

Associated Press  

LONDON — The Bank of England cut its main interest rate by a quarter of a percentage point to 4.75% on Thursday after inflation across the U.K. fell significantly, relieving some pressure on borrowers who have faced elevated mortgage and loan costs. Though inflation has fallen below the bank’s target of 2%, Governor Andrew Bailey cautioned that interest rates would …

Sharply rising bond rates could stem Wall Street's 'relief rally' and push interest rate cuts further into the future
1 month, 2 weeks ago

Sharply rising bond rates could stem Wall Street's 'relief rally' and push interest rate cuts further into the future

ABC  

The apparent roar of approval was almost deafening. It's a world that, down the track, promises a return of inflation and permanently higher interest rates as America shifts to a more protectionist global stance that punishes China and, by extension, hurts Australia. Since mid-September, US money markets almost inexplicably have begun forecasting a rise in interest rates. The bond is …

UK debt woe as borrowing costs surge again amid fresh market jitters
1 month, 2 weeks ago

UK debt woe as borrowing costs surge again amid fresh market jitters

Daily Mail  

UK borrowing costs hit a post-Budget peak yesterday Yields on ten-year UK bonds – known as gilts – surpassed levels seen last week to reach a new one-year high of 4.541 per cent. Debt shock: Yields on ten-year UK bonds – known as gilts – surpassed levels seen last week to reach a new one-year high of 4.541% That has …

Eurozone Yields Soar as Upbeat Data Denies ECB's Cut
1 month, 3 weeks ago

Eurozone Yields Soar as Upbeat Data Denies ECB's Cut

Live Mint  

Eurozone economies are showing signs of recovery, with Germany's 2-year yield reaching a three-week high and Italy's 10-year yield hitting an eight-week high. The ECB's monetary policy is being closely monitored by market participants, as the central bank is not expected to stimulate the economy with a large rate cut at its next policy meeting.

Bank of England poised to hold interest rates at 5%, economists say
3 months ago

Bank of England poised to hold interest rates at 5%, economists say

The Independent  

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 Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The Bank of England is …

Bank of England lowers its main interest rate by 0.25%, to 5%, its first cut in over 4 years
4 months, 3 weeks ago

Bank of England lowers its main interest rate by 0.25%, to 5%, its first cut in over 4 years

Associated Press  

LONDON — The Bank of England has cut interest rates for the first time since the onset of the COVID-19 pandemic in early 2020 as inflationary pressures in the economy have eased. “Inflationary pressures have eased enough that we’ve been able to cut interest rates today,” said Bank Gov. Ensuring low and stable inflation is the best thing we can …

Bank of England keeps main interest rate at 16-year high of 5.25% despite inflation fall
6 months ago

Bank of England keeps main interest rate at 16-year high of 5.25% despite inflation fall

Associated Press  

LONDON — The Bank of England on Thursday kept its main interest rate at a 16-year high of 5.25% even though inflation has fallen to its target of 2%, with several policymakers warning that a premature cut could stoke another bout of price rises. It said the decision was, as always, based on achieving the 2% inflation target “sustainably in …

Europe gambles on interest rate cut for growth as Britain languishes
6 months, 2 weeks ago

Europe gambles on interest rate cut for growth as Britain languishes

The Telegraph  

Core inflation, which strips out volatile movements in food and energy, is also predicted to remain higher for longer, while growth is forecast to pick up to 0.9pc this year, from a previous prediction of 0.6pc. Policymakers said high interest rates were still bearing down on growth as they vowed to keep them high “for as long as necessary to …

Bank of England will cut interest rates in August, says Goldman Sachs
7 months ago

Bank of England will cut interest rates in August, says Goldman Sachs

The Telegraph  

Thanks for joining me. 5 things to start your day 1) Britain’s third new nuclear power station to be built in Anglesey | New North Wales site expected to generate 7pc of the UK’s electricity 2) Sunak and Hunt to press ahead with tax cuts in defiance of IMF warnings | IMF warns next PM faces ‘tough choices’ despite upgrading …

Bank of England edges closer to rate cut, possibly in June, as it predicts below-target inflation
7 months, 2 weeks ago

Bank of England edges closer to rate cut, possibly in June, as it predicts below-target inflation

Associated Press  

LONDON — The Bank of England maintained its key U.K. interest rate at a 16-year high of 5.25% though it gave a broad hint that a reduction could be on the cards as soon as June as inflation is forecast to fall below target. I’m optimistic that things are moving in the right direction.” Bailey indicated that the financial markets …

UK inflation is heading in ‘right direction,’ but Bank of England isn’t ready to cut rates
9 months ago

UK inflation is heading in ‘right direction,’ but Bank of England isn’t ready to cut rates

Associated Press  

LONDON — The Bank of England kept its main interest rate unchanged at a 16-year high on Thursday and avoided signaling, unlike other central banks, when it might start to cut even though inflation has dropped sharply from multidecade peaks. In the U.K., market expectations that lower interest rates were on the horizon got a boost this week with news …

Inflation is falling fast – but will the Bank of England move to cut interest rates?
9 months ago

Inflation is falling fast – but will the Bank of England move to cut interest rates?

The Independent  

Some welcome news for consumers: inflation has once again fallen by more than expected. The headline number for February, per the Office for National Statistics, came in at 3.4 per cent – below both the consensus of the City and the Bank of England’s own forecast of 3.5. The CPI “all services” rate also declined to 6.1 per cent in …

ECB, BOE Shouldn't Wait for Fed to Cut Interest Rates
10 months, 2 weeks ago

ECB, BOE Shouldn't Wait for Fed to Cut Interest Rates

Hindustan Times  

-- With the US economy continuing to dodge recession, the Federal Reserve appears to be in no rush to cut interest rates. US Treasury yields have risen around 20 basis points across the curve this year, and even if the first rate cut isn't first-quarter business, it'll probably happen before summer. Fed Chair Jerome Powell is keeping his options open, …

Like the US Fed, Bank of England is edging toward interest rate cuts — but not quite yet
10 months, 3 weeks ago

Like the US Fed, Bank of England is edging toward interest rate cuts — but not quite yet

Associated Press  

LONDON — Just like the U.S. Federal Reserve, the Bank of England is edging toward cutting interest rates — though not quite yet. “We need to see more evidence that inflation is set to fall all the way to the 2% target, and stay there, before we can lower interest rates,” he said. Bailey also said the bank was keeping …

Bank of England holds interest rates at a 15-year high despite worries about the economy
1 year ago

Bank of England holds interest rates at a 15-year high despite worries about the economy

Associated Press  

LONDON — The Bank of England kept borrowing rates unchanged Thursday despite mounting worries over the state of the British economy, and it showed little sign that it is contemplating cutting them anytime soon — unlike the U.S. Federal Reserve. The central bank left its main interest rate at a 15-year high of 5.25%, where it has stood since August …

Bank of England to stress test for major bond market crash
1 year, 1 month ago

Bank of England to stress test for major bond market crash

The Telegraph  

Over the past two years, the Bank of England has raised its base rate from 0.1pc to 5.25pc, with the US Federal Reserve and the European Central Bank making similar moves. Jamie Dimon, chairman and chief executive of JP Morgan, recently told the Sunday Times: “Geopolitical matters are very serious - arguably the most serious since 1938.” Christian Sewing, chief …

Bank of England keeps main UK interest rate at 15-year high of 5.25% and cautions over oil prices
1 year, 1 month ago

Bank of England keeps main UK interest rate at 15-year high of 5.25% and cautions over oil prices

The Independent  

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 Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ …

Bank of England keeps main UK interest rate at 15-year high of 5.25% and cautions over oil prices
1 year, 1 month ago

Bank of England keeps main UK interest rate at 15-year high of 5.25% and cautions over oil prices

Associated Press  

LONDON — The Bank of England kept its main interest rate unchanged on Thursday at the 15-year high of 5.25% and indicated that borrowing costs will likely remain at these sort of elevated levels for a while, especially if oil and gas prices increase sharply because of the Israel-Hamas war. In a statement, the bank’s nine-member Monetary Policy Committee indicated …

Bank of England hints that UK borrowing rates will stay high after its new hike
1 year, 4 months ago

Bank of England hints that UK borrowing rates will stay high after its new hike

Associated Press  

LONDON — The Bank of England raised its main interest rate Thursday to a fresh 15-year high and indicated it would stay high for some time to bring down persistently high inflation — another potential blow for those seeing their rents and mortgages rise during a cost-of-living crisis. The bank said some of the risks from more stubborn inflation, notably …

European Central Bank raises interest rates to 22-year high
1 year, 4 months ago

European Central Bank raises interest rates to 22-year high

The Telegraph  

Eurozone interest rates have climbed to the highest level for 22 years as the European Central Bank indicated it is preparing to take borrowing rates to a record high in the coming months. The European Central Bank took its headline deposit rate to 3.75pc, matching the record high last seen in 2001, as President Christine Lagarde said she was willing …

UK homeowners get some respite as inflation falls by more than anticipated to a 15-month low
1 year, 5 months ago

UK homeowners get some respite as inflation falls by more than anticipated to a 15-month low

Associated Press  

LONDON — Inflation in the U.K. has fallen by more than anticipated to a 15-month low, official figures showed Wednesday, a development that offered struggling households hope that interest rates won’t rise as much as feared over the coming months. Although Dave Ramsden, deputy governor at the Bank of England, said inflation is still “much too high,” analysts said the …

UK recession fears mount after Bank of England hikes borrowing rates by more than expected
1 year, 6 months ago

UK recession fears mount after Bank of England hikes borrowing rates by more than expected

Associated Press  

LONDON — Fears that the British economy is heading for recession mounted sharply Thursday after the Bank of England raised borrowing costs by more than anticipated, seeking to combat stubbornly high inflation with a hike that will hit borrowers hard, particularly homeowners who have to refinance in the coming months. “But if we don’t raise rates now, it could be …

Bank of England hikes interest rates to 5%, stoking fears of a ‘mortgage bomb’
1 year, 6 months ago

Bank of England hikes interest rates to 5%, stoking fears of a ‘mortgage bomb’

CNN  

London CNN — The Bank of England raised interest rates by half a percentage point Thursday, after data this week revealed surprisingly stubborn inflation. “We are committed to returning inflation to the 2% target and will make the decisions necessary to achieve that.” Financial markets now expect the Bank of England’s benchmark interest rate to reach 6% around the turn …

UK inflation steady at 8.7% against predictions for modest fall
1 year, 6 months ago

UK inflation steady at 8.7% against predictions for modest fall

Hindustan Times  

Consumer price inflation across the UK was unchanged at 8.7 per cent in the year to May against expectations for a modest decline, official figures showed on Wednesday, a development that is set to see the Bank of England raise the cost of borrowing again. Financial markets think news of the unchanged rate will mean the Bank of England will …

Britain’s property market faces a reckoning – the house price plunge is only beginning
1 year, 8 months ago

Britain’s property market faces a reckoning – the house price plunge is only beginning

The Telegraph  

Invisible threat This presents a looming potential threat for the mortgage market. This is likely to mean more stringent “affordability tests” for borrowers, smaller loans in proportion to income, and higher mortgage rates on loans for buyers with smaller deposits. The British housing market is much more exposed to higher mortgage rates than other European markets. This is because debt-to-income …

UK central bank hikes rates like Fed amid financial turmoil
1 year, 9 months ago

UK central bank hikes rates like Fed amid financial turmoil

Associated Press  

LONDON — The Bank of England extended its battle against inflation Thursday, announcing an 11th consecutive interest rate increase despite concerns about the economic fallout from troubles in the global financial system. Britain’s central bank boosted its key rate by a quarter-percentage point to 4.25%, a day after the U.S. Federal Reserve approved a similar move to tame price increases …

European inflation eases for 3rd month but prices still bite
1 year, 10 months ago

European inflation eases for 3rd month but prices still bite

Associated Press  

LONDON — Europe’s inflation rate dipped at the start of the year, giving some relief to consumers but still leaving them facing higher prices that have driven protests and will likely press the European Central Bank into another interest rate hike Thursday. Russia’s war in Ukraine has shaken up food and energy markets, and while commodity prices have fallen from …

Bank of England hikes interest rates again but softens pace
2 years ago

Bank of England hikes interest rates again but softens pace

Associated Press  

LONDON — Britain’s central bank on Thursday raised its key interest rate again but toned down the pace as inflation shows signs of easing, mirroring action by the U.S. Federal Reserve and European policymakers. Should that scenario play out, further rate increases may be needed to get inflation back to its 2% target, the bank said, adding that it “will …

Europe sees fastest pace of rate hikes since euro launched
2 years, 1 month ago

Europe sees fastest pace of rate hikes since euro launched

Associated Press  

FRANKFURT, Germany — The European Central Bank piled on another outsized interest rate hike aimed at squelching out-of-control inflation, increasing rates at the fastest pace in the euro currency’s history and underscoring the bank’s determination to control prices despite the threat of recession. ECB President Christine Lagarde acknowledged the risk is growing that the 19-country eurozone may plunge into recession …

The UK just stepped back from the brink. But there’s more trouble ahead
2 years, 2 months ago

The UK just stepped back from the brink. But there’s more trouble ahead

CNN  

London CNN Business — The decision by Jeremy Hunt, the new UK finance minister, to jettison the bulk of Prime Minister Liz Truss’ much-maligned plans to boost growth has come as a huge relief to investors, easing their worries about the sustainability of government finances. It said it sees “additional downside risks to growth” following Hunt’s announcements on Monday. “The …

Government bonds and pound rally amid pressure for mini-budget U-turn
2 years, 2 months ago

Government bonds and pound rally amid pressure for mini-budget U-turn

The Independent  

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 Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy UK government bonds and the …

‘Slow-moving car crash.’ There’s no quick fix for the UK market mess
2 years, 2 months ago

‘Slow-moving car crash.’ There’s no quick fix for the UK market mess

CNN  

London CNN Business — The Bank of England is struggling to contain a crisis triggered by the UK government’s brash plans to borrow heavily to pay for tax cuts, feeding fears that the country’s financial markets could once again spin out of control. “The market’s turned around and said, “We need you to do more.’” Bank of England Governor Andrew …

Bank of England warns risk of UK financial crisis hasn’t gone away
2 years, 2 months ago

Bank of England warns risk of UK financial crisis hasn’t gone away

CNN  

London CNN Business — For the second time in two days, the Bank of England has been forced to offer extra support to UK markets still reeling from the government’s announcement last month that it would slash taxes and increase borrowing. The central bank warned Tuesday that there was still a “material risk to UK financial stability” from a sharp-sell …

Bank of England signals it won't keep borrowing costs down as it rejects £1.9bn of gilts sales
2 years, 2 months ago

Bank of England signals it won't keep borrowing costs down as it rejects £1.9bn of gilts sales

The Telegraph  

It came as a top Bank official urged policymakers to increase interest rates aggressively to curb inflation. Ms Mann, who voted to increase interest rates by 0.75 percentage points last month, said history suggested price rises were more likely to be “stabilised using the front-loaded strategy”, even if policymakers had to reverse course later. Julian Jessop, an independent economist and …

UK central bank intervenes in market to halt economic crisis
2 years, 2 months ago

UK central bank intervenes in market to halt economic crisis

Associated Press  

LONDON — The Bank of England took emergency action Wednesday to stabilize U.K. financial markets and head off a crisis in the broader economy after the government spooked investors with a program of unfunded tax cuts, sending the pound tumbling and the cost of government debt soaring. The Bank of England said it would buy long-term government bonds over the …

Bank of England to buy U.K. government bonds to stabilise financial markets
2 years, 2 months ago

Bank of England to buy U.K. government bonds to stabilise financial markets

The Hindu  

The Bank of England said on Wednesday that it would buy as many long-dated government bonds as needed between now and October 14 to stabilise financial markets, after a slump in British gilt prices since a government fiscal statement on Friday. Citing potential risks to U.K. financial stability, the BoE also said it would delay the start of a programme …

Bank of England will buy UK bonds at ‘whatever scale’ necessary to halt crash
2 years, 2 months ago

Bank of England will buy UK bonds at ‘whatever scale’ necessary to halt crash

CNN  

London CNN Business — The Bank of England said Wednesday it would buy UK government debt “on whatever scale is necessary” in an emergency intervention to halt a bond market crash that it warned could threaten financial stability. “This repricing has become more significant in the past day — and it is particularly affecting long-dated UK government debt,” the central …

Markets are now treating UK bonds like Greek and Italian debt
2 years, 2 months ago

Markets are now treating UK bonds like Greek and Italian debt

CNN  

London CNN Business — The pound may have paused its headlong crash toward parity with the US dollar, but the damage to the UK economy sparked by Prime Minister Liz Truss’ huge tax-cutting gamble is still rippling through financial markets. “This is a situation where government borrowing costs — and therefore all our borrowing costs — are incredibly vulnerable,” economist …

The pound’s crash will make inflation worse and push interest rates higher
2 years, 2 months ago

The pound’s crash will make inflation worse and push interest rates higher

CNN  

London CNN Business — The UK government’s decision to implement the biggest tax cuts in 50 years while borrowing tens of billions of dollars to subsidize soaring energy costs this winter is a massive gamble that’s sent shockwaves through financial markets. The Bank of England said in an emergency statement that it was “monitoring developments in financial markets very closely,” …

Bank of England urged to call emergency rates meeting next week to rescue pound
2 years, 3 months ago

Bank of England urged to call emergency rates meeting next week to rescue pound

The Telegraph  

The Bank of England has been urged to raise interest rates as soon as next week to help the pound from further weakening. Meanwhile, UK bond yields were on the rise, with the 10-year gilt yields seeing their biggest one-day surge on record in Bloomberg data. Deutsche Bank analysts said there are "very strong signals" that the market is no …

UK braces for long recession after biggest interest rate hike in 27 years, ASX rises to two-month high
2 years, 4 months ago

UK braces for long recession after biggest interest rate hike in 27 years, ASX rises to two-month high

ABC  

The Australian share market has risen to its highest level since early June, despite oil prices plummeting overnight as the Bank of England announced its biggest interest rate hike in 27 years and warned of a long recession for Britain. Regulatory hurdles facing cryptocurrencies, rising interest rates and the Ukraine crisis have affected investors' appetite for riskier assets, pulling bitcoin …

Bank of England raises interest rates in bid to tame inflation
2 years, 4 months ago

Bank of England raises interest rates in bid to tame inflation

Al Jazeera  

UK’s central bank hikes key interest rate to 1.75 percent, its highest level since 2008, and warns of recession ahead. The United Kingdom’s central bank has made its biggest increase to interest rates in 27 years in a bid to smother soaring inflation and warned the country faces a long recession ahead. UK ‘behind the curve’ Al Jazeera’s Andrew Simmons, …

UK interest rate: The Bank of England just made its biggest hike in 27 years
2 years, 4 months ago

UK interest rate: The Bank of England just made its biggest hike in 27 years

CNN  

London CNN Business — Central bankers in the United Kingdom have announced the biggest increase in interest rates in 27 years, as spiraling inflation continues to cripple millions of households’ finances. In June, annual consumer prices rises reached a four-decade high to hit 9.4%, plunging millions of Britons into a cost-of-living crisis that has forced many to choose between ‘heating …

UK reports back-to-back declines in GDP, first time since start of pandemic
2 years, 6 months ago

UK reports back-to-back declines in GDP, first time since start of pandemic

Live Mint  

Official numbers released on June 13 showed that Britain's Gross Domestic Product unexpectedly dropped in April, raising fears of a dramatic slowdown just three days before the Bank of England reveals the amount of its latest interest rate response to the spike in inflation. The economy shrank by 0.3 percent in April after falling by 0.1 percent in March, the …

European Central Bank gives no clear date for rate hikes
2 years, 8 months ago

European Central Bank gives no clear date for rate hikes

Associated Press  

The head of the European Central Bank reiterated Thursday that the bank would raise interest rates “some time after” ending its pandemic stimulus efforts later this year, sticking to a gradual path even as the United States, United Kingdom and other countries take a harder line to combat soaring consumer prices. Bank President Christine Lagarde, who previously opened the door …

Bank of England hikes interest rates again as prices surge
2 years, 10 months ago

Bank of England hikes interest rates again as prices surge

Associated Press  

LONDON — The Bank of England raised interest rates for the second time in three months on Thursday, putting the United Kingdom far ahead of the rest of Europe and the U.S. in moving to tame surging inflation that is squeezing consumers and businesses. “Amid the global monetary policy regime shift from easing to tightening, the Bank of England is …

UK raises interest rates as central banks focus on inflation
3 years ago

UK raises interest rates as central banks focus on inflation

Associated Press  

LONDON — The United Kingdom’s central bank on Thursday became the first in a major advanced economy to raise interest rates since the coronavirus pandemic began, as banks controlling monetary policy around the globe shift their focus from stimulating the economy to combating soaring consumer prices that arrived during the recovery. European Central Bank President Christine Lagarde also acknowledged what …

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