Bank of England faces dilemma after potential Taylor Swift upside impact on UK inflation
5 months, 1 week ago

Bank of England faces dilemma after potential Taylor Swift upside impact on UK inflation

Associated Press  

LONDON — The Bank of England is facing a dilemma about whether to cut interest rates next month after official figures Wednesday showed inflation holding steady at its target against expectations of a modest decline, possibly as a result of Taylor Swift’s Eras Tour. The statistics agency said the largest upward contribution to the annualized inflation rate came from restaurants and hotels, with some economists attributing the increases to Taylor Swift’s tour of the U.K. “While difficult to fully untangle, it’s certainly very possible that some Taylor Swift effects were at play here and could very well reverse out next month,” said Sanjay Raja, chief U.K. economist at Deutsche Bank. To be sure, we now think that an August rate cut is finely balanced.” The last time inflation was at 2% was in July 2021 before prices started to shoot up, first as a result of supply chain issues during the coronavirus pandemic and then because of Russia’s invasion of Ukraine, which pushed up energy costs.

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History of this topic

Bank of England set to keep interest rates on hold TODAY despite UK economy stalling after Labour's Budget raid - with fears over resurgent inflation
Top News
5 days, 10 hours ago

Bank of England set to keep interest rates on hold TODAY despite UK economy stalling after Labour's Budget raid - with fears over resurgent inflation

Daily Mail  

The Bank of England is set to keep 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. Rob Wood, chief UK economist for Pantheon Macroeconomics, said: …

U.K. Inflation rises further above Bank of England's target in November
6 days, 10 hours ago

U.K. Inflation rises further above Bank of England's target in November

The Hindu  

Inflation in the U.K. has risen to its highest level since March, driven by an increase in fuel prices last month, official figures showed on Wednesday. Rate-setters had anticipated a pick-up in inflation when the central bank last cut rates in early November as price pressures eased earlier in the year — in September, inflation had fallen to its lowest …

UK inflation increase solidifies expectations interest rates will be kept on hold
6 days, 11 hours ago

UK inflation increase solidifies expectations interest rates will be kept on hold

Associated Press  

LONDON — Inflation in the U.K. rose to its highest level in eight months during November, official figures showed Wednesday, a development that has cemented market expectations that the Bank of England will opt against cutting borrowing costs this week. It said stubbornly high inflation in the crucial services sector, which accounts for around 80% of the U.K. economy, and …

Bank of England expected to hold interest rates after jump in inflation
1 week, 4 days ago

Bank of England expected to hold interest rates after jump in inflation

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 …

Brits hope for mortgage relief with Bank of England poised to cut interest rates TODAY… but fears big-spending Budget could keep borrowing costs higher for years
1 month, 2 weeks ago

Brits hope for mortgage relief with Bank of England poised to cut interest rates TODAY… but fears big-spending Budget could keep borrowing costs higher for years

Daily Mail  

The Bank of England is poised to cut interest rates today - but could signal that the big-spending Budget will keep borrowing costs higher in future. Threadneedle Street's decision could be swayed by grim figures this week showing growth in the UK services sector slowing to its lowest rate in nearly a year. Tim Moore, economics director at S&P Global …

Inflation set to stay above 2% for next four years, says OBR
1 month, 3 weeks ago

Inflation set to stay above 2% for next four years, says OBR

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 inflation is set to …

Interest rate cut ‘nailed on’ after UK inflation falls to three-year low
2 months, 1 week ago

Interest rate cut ‘nailed on’ after UK inflation falls to three-year low

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 A fall in UK inflation …

Inflation climbs above Bank of England target in first rise of 2024
4 months, 1 week ago

Inflation climbs above Bank of England target in first rise of 2024

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 Inflation has risen for the …

Inflation rises to 2.2% for first time this year in blow to interest rate cut next month
4 months, 1 week ago

Inflation rises to 2.2% for first time this year in blow to interest rate cut next month

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. However, despite the smaller than …

Taylor Swift’s tour kept up inflation – but the Bank of England can just shake it off
5 months ago

Taylor Swift’s tour kept up inflation – but the Bank of England can just shake it off

The Independent  

Taylor Swift is a peerless performer. That may not seem so bad, and it is in line with the Bank of England’s target, but the number was worse than the 1.9 per cent economists had hoped for. The restaurants and hotels category posted a 6.2 per cent rise and room rates were highlighted by Grant Fitzner, the chief economist of …

‘Taylor Swift effect’ stops inflation dropping below 2% as calls grow for rate cut
5 months, 1 week ago

‘Taylor Swift effect’ stops inflation dropping below 2% as calls grow for rate cut

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. The rate of Consumer Prices Index inflation remained unchanged …

UK inflation stays at 2% target in June, leaving rate cut on a 'knife edge'
5 months, 1 week ago

UK inflation stays at 2% target in June, leaving rate cut on a 'knife edge'

Hindustan Times  

Inflation in the U.K. held steady at the Bank of England's target rate of 2% in the year to June, official figures showed Wednesday, in a development that could be enough for policymakers to cut borrowing costs next month. Grocery price inflation fell to its lowest level since September 2021 in a further sign of easing cost pressures, ahead of …

UK inflation rate back down to 2%
6 months ago

UK inflation rate back down to 2%

China Daily  

FILE PHOTO: A tourist shelters from the rain under an Union Jack umbrella near the Bank of England in the City of London financial district in London, Britain, February 13, 2024. The United Kingdom's ruling Conservative Party got some rare good news on Wednesday, when the country's inflation rate eased back down to the Bank of England's 2 percent target …

Inflation drops to Bank of England’s 2% target for first time in almost three years
6 months ago

Inflation drops to Bank of England’s 2% target for first time in almost three years

The Independent  

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Inflation has fallen back to the 2 per cent target …

With election looming, UK’s governing Conservatives seize on inflation fall to 2% target
6 months ago

With election looming, UK’s governing Conservatives seize on inflation fall to 2% target

Associated Press  

LONDON — Inflation in the U.K. returned to the Bank of England’s target rate of 2% for the first time in nearly three years, official figures showed Wednesday, a development that was seized on by the governing Conservative Party as evidence that its economic plan is “working” ahead of the July 4 election. But Conservative Prime Minister Rishi Sunak hailed …

UK inflation - live: Tories call for Bank of England to cut interest rates despite market gloom over rising prices
7 months ago

UK inflation - live: Tories call for Bank of England to cut interest rates despite market gloom over rising prices

The Independent  

✕ Close Hunt attacks Labour and says he refutes 'myths' the economy is worse under Tories 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 …

UK inflation predicted to drop close to Bank of England’s 2% target
7 months ago

UK inflation predicted to drop close to Bank of England’s 2% target

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 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 …

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 …

Interest rates may need to rise again, warns Bank of England
1 year ago

Interest rates may need to rise again, warns Bank of England

The Telegraph  

Policymakers pushed back against any assumption of an imminent fall in the Bank’s base rate, warning that pay and services inflation – two key indicators of price pressures – “remained elevated”. The MPC said: “Inflation persistence remained higher than in other major advanced economies, possibly reflecting less favourable supply-side developments and stronger second-round effects in the UK.” Britain’s inflation rate, …

UK inflation falls to 17-month low of 6.8% but unlikely to derail another interest rate rise
1 year, 4 months ago

UK inflation falls to 17-month low of 6.8% but unlikely to derail another interest rate rise

Associated Press  

LONDON — The rate of inflation in the U.K. fell sharply in July to a 17-month low largely on the back of lower energy prices, official figures showed Wednesday, a welcome development for hard-pressed households struggling during the cost of living crisis. The Office for National Statistics said the annual rate of inflation, as measured by the consumer price index, …

Bank of England expected to hike interest rates after record wage rise
1 year, 4 months ago

Bank of England expected to hike interest rates after record wage rise

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. Wage growth means the Bank …

Inflation now driven by demands for higher wages, warn businesses
1 year, 5 months ago

Inflation now driven by demands for higher wages, warn businesses

The Telegraph  

Inflation is now being driven by higher wages as companies pass on rising salary costs to their customers, bosses have warned. The economy is slowing sharply, with the manufacturing sector shrinking and the dominant services industries running out of steam, according to the purchasing managers’ index, an influential survey from S&P Global. Price rises are slowing from last year’s highs …

Why the Bank of England risks overkill after months of doing too little
1 year, 5 months ago

Why the Bank of England risks overkill after months of doing too little

The Telegraph  

The slide in inflation stalled in May, sticking stubbornly at April’s rate of 8.7pc, well above the 2pc target. Twisting the tap further and faster, the Bank raised its interest rate by another 0.5 percentage points to 5pc last week in an increasingly desperate effort to rein in prices. Or are the other seven members of the MPC – including …

Why the Bank of England can’t fix inflation caused by Brexit and war
1 year, 6 months ago

Why the Bank of England can’t fix inflation caused by Brexit and war

The Independent  

Britain’s problem isn’t so much that it now has runaway inflation but that it’s the wrong kind of inflation altogether. Unfortunately, the Bank of England doesn’t own any wheat farms or oil fields, and its staff aren’t available to work in the hospitality sector or drive lorries, so all it can do is keep ramping rates up until the economy …

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 …

Explained: Why Britain is experiencing more inflation than the EU and the US
1 year, 6 months ago

Explained: Why Britain is experiencing more inflation than the EU and the US

Firstpost  

The negative economic shock of Brexit, as well as the UK’s reliance on its financial services sector, are factors exacerbating the country’s inflationary troubles Britain has a bigger inflation problem than either the US or the eurozone, according to Bank of England policymaker Catherine Mann. The UK rate is also nearly double the equivalent US rate and significantly higher than …

Bank of England ‘cannot rule out’ further interest rate rises, says decision-maker
1 year, 6 months ago

Bank of England ‘cannot rule out’ further interest rate rises, says decision-maker

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. Jonathan Haskel told an audience in Washington DC that …

People need to accept they are poorer, says Bank of England
1 year, 7 months ago

People need to accept they are poorer, says Bank of England

The Telegraph  

British families must "accept that they’re worse off" after a surge in inflation and stop pushing for a pay rise, a senior Bank of England official has said. It came just hours after another senior Threadneedle Street official insisted that the Bank would have been powerless to bring inflation under control even if it had acted faster on interest rates. …

Dollar Gains on Rising US Yields, British Inflation Lifts Pound
1 year, 8 months ago

Dollar Gains on Rising US Yields, British Inflation Lifts Pound

News 18  

The dollar strengthened on Wednesday, lifted by rising Treasury yields, though the pound gained against the greenback after British inflation stayed above 10 percent in March and put more pressure on the Bank of England to keep raising rates. The yield on two-year Treasury notes, which are sensitive to expectations for the U.S. central bank’s monetary policy, rose 7 basis …

UK inflation remains over 10% as food prices rise
1 year, 8 months ago

UK inflation remains over 10% as food prices rise

Associated Press  

LONDON — The price of food in the U.K. rose at the fastest pace in 45 years last month in, keeping inflation above 10% for a seventh straight month amid a cost-of-living crisis that has fueled a wave of strikes by government workers. Food prices jumped 19.2% in the 12 months through February, the biggest increase since August 1977, the …

UK inflation jumps to 10.4%, surprising analysts
1 year, 9 months ago

UK inflation jumps to 10.4%, surprising analysts

Associated Press  

LONDON — U.K. inflation accelerated for the first time in four months in February as high food and energy prices hit consumers battered by the nation’s cost-of-living crisis. “February’s surprise increase in inflation will raise more concerns for households whose budgets are already stretched to their limits,” said George Dibb of the Institute for Public Policy Research, a progressive think …

UK inflation jumps to 10.4%, surprising analysts
1 year, 9 months ago

UK inflation jumps to 10.4%, surprising analysts

Firstpost  

While economists expect prices to drop rapidly later this year, inflation is more than five times higher than the Bank of England’s 2% target London: Britain’s inflation rate rose for the first time in four months in February, surprising analysts and increasing pressure on the Bank of England to raise interest rates at its meeting on Thursday. The consumer price …

Bank of England rate hike says ‘too soon to declare victory’
1 year, 10 months ago

Bank of England rate hike says ‘too soon to declare victory’

Associated Press  

LONDON — The Bank of England announced another “forceful” increase in interest rates Thursday, saying it was too soon to declare victory against inflation that has slowed slightly but is still fueling a cost-of-living crisis, public-sector strikes and fears of recession. The British central bank has approved four straight increases of a half-point or more since Russia’s invasion of Ukraine …

Bank of England poised for big interest rate hike to tame inflation
1 year, 10 months ago

Bank of England poised for big interest rate hike to tame inflation

Firstpost  

London: The Bank of England is expected to raise interest rates by as much as half a percentage point on Thursday as it seeks to tame the double-digit inflation fuelling a cost-of-living crisis, public-sector strikes and fears of recession. Economists suggest this may be the last big rate increase for Britain’s central bank, which has approved 10 consecutive hikes since …

Bank of England poised for big rate hike to tame inflation
1 year, 10 months ago

Bank of England poised for big rate hike to tame inflation

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. Economists suggest this may be …

UK inflation eases for a 2nd month, falling to 10.5%
1 year, 11 months ago

UK inflation eases for a 2nd month, falling to 10.5%

Associated Press  

LONDON — U.K. inflation eased for a second month in December, boosting confidence that the cost-of-living crisis has peaked. “While any fall in inflation is welcome, we have a plan to go further and halve inflation this year, reduce debt and grow the economy — but it is vital that we take the difficult decisions needed and see the plan …

Bank of England policy makers rebel as it raises interest rates to 14-year high
2 years ago

Bank of England policy makers rebel as it raises interest rates to 14-year high

The Telegraph  

The Bank of England was split three ways over how much to increase interest rates as it opted to lift them to their highest level in 14 years. A divide has emerged between ratesetters on the Monetary Policy Committee, which voted by a majority of six to three to raise the base rate by 0.5 percentage points to 3.5pc. Bank …

UK inflation eases but little relief at near 40-year high
2 years ago

UK inflation eases but little relief at near 40-year high

Associated Press  

LONDON — U.K. inflation has eased but is still stuck near a 40-year high, piling pressure on employers to boost wages as the nation faces a wave of strikes and the Bank of England to approve a ninth consecutive interest rate increase. While annual consumer price inflation dipped to 10.7% in November from 11.1% the previous month, it is at …

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,” …

UK inflation to almost double to 18.6pc, economists warn
2 years, 4 months ago

UK inflation to almost double to 18.6pc, economists warn

The Telegraph  

It would represent the highest rate since 1976, when a sterling crisis forced the government to seek a bailout from the International Monetary Fund. Citigroup expects the retail prices index measure of inflation, which is not classified as an official statistic, but is linked to rises in rail fares, air passenger duty, mobile phone tariffs and about a quarter of …

UK inflation hits 10% as cost-of-living crisis accelerates
2 years, 4 months ago

UK inflation hits 10% as cost-of-living crisis accelerates

CNN  

CNN Business — Inflation in the United Kingdom hit a new 40-year high last month, rising above 10% for the first time since 1982 and piling further pain on households already struggling to pay their bills. Soaring food prices — up 12.7% since July 2021 — were the largest single contributor to the acceleration in inflation, the ONS said. “All …

Faced with soaring inflation, Bank of England announces largest rate increase in 27 years
2 years, 4 months ago

Faced with soaring inflation, Bank of England announces largest rate increase in 27 years

The Hindu  

In a response to soaring inflation, the Monetary Policy Committee of the Bank of England on Thursday voted 8-1 to raise the U.K.’s bank rate by half a percentage point to 1.75%, the highest-ever increase since 1995. “That largely reflects a near doubling in wholesale gas prices since May, owing to Russia’s restriction of gas supplies to Europe and the …

Bank of England raises rates by most since 1995 even as long recession looms
2 years, 4 months ago

Bank of England raises rates by most since 1995 even as long recession looms

The Hindu  

The Bank of England raised interest rates by the most in 27 years on August 4, despite warning that a long recession is on its way, as it rushed to smother a rise in inflation which is now set to top 13%. Reeling from a surge in energy prices caused by Russia's invasion of Ukraine, the BoE's Monetary Policy Committee …

Food prices push UK inflation to 40-year high of 9.1 percent
2 years, 6 months ago

Food prices push UK inflation to 40-year high of 9.1 percent

Al Jazeera  

The Bank of England says worse is yet to come as the UK records the highest inflation rate out of the G7 countries. Rising food prices pushed the United Kingdom’s consumer price inflation to a 40-year high of 9.1 percent last month, the highest rate out of the Group of Seven countries. “With the economic outlook so unclear, no one …

Bank of England urged to protect sinking pound with higher interest rates
2 years, 6 months ago

Bank of England urged to protect sinking pound with higher interest rates

The Telegraph  

The Bank of England must prop up the pound with a rapid increase in interest rates or risk a further surge in inflation, a senior policymaker has warned. Catherine Mann, a member of the Bank's rate-setting Monetary Policy Committee, said that Britain is falling behind the US after the Federal Reserve embarked on a vigorous round of rate increases. Ms …

Bank of England hikes interest rates but resists bolder move
2 years, 6 months ago

Bank of England hikes interest rates but resists bolder move

Associated Press  

LONDON — The Bank of England raised interest rates by a quarter-percentage point Thursday, shrugging off pressure for a bolder move to combat price increases that have pushed inflation to a 40-year high. “The committee will be particularly alert to indications of more persistent inflationary pressures, and will if necessary act forcefully in response.” The decision came as the bank …

Bank of England warns inflation will hit 11pc – but still votes against bigger interest rate rise
2 years, 6 months ago

Bank of England warns inflation will hit 11pc – but still votes against bigger interest rate rise

The Telegraph  

Inflation will climb to 11pc this year, the Bank of England has predicted, prompting the Chancellor to indicate that he will not cut personal taxes until spiralling prices are brought under control. On Thursday the Bank's Monetary Policy Committee, led by Governor Andrew Bailey, increased interest rates by a quarter of one percent to 1.25pc - the fifth rise in …

Bank of England governor rejects criticism on inflation
2 years, 7 months ago

Bank of England governor rejects criticism on inflation

Associated Press  

LONDON — Bank of England Gov. Andrew Bailey on Monday rejected criticism that the institution didn’t move quickly enough to quash inflationary pressures, telling a parliamentary committee that monetary policymakers weren’t able to predict wars. There is also a further leg of COVID, with the situation in China, which appears to be affecting the country more seriously.” The central bank …

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