Tag: fragile

Bank minutes suggest low rates for some time to come

Bank minutes suggest low rates for some time to come

Minutes of the Bank of England’s July 6-7 meeting have been released today and have revealed the Monetary Policy Committee (MPC) again voted 7-2 to lift interest rates and 8-1 to restart the Bank’s quantitative easing (QE) scheme. Adam Posen, again, called for an injection of £50 billion via the QE scheme to boost the [...]

July 20, 2011 | 0 Comments More
BCC survey reveals fragile economic recovery

BCC survey reveals fragile economic recovery

A quarterly survey by the British Chambers of Commerce (BCC) revealed that the UK economy was “fragile”. The BCC’s survey for the three months to the end of June showed a slow recovery and estimates that the economy grew by 0.3% in the period – slower than the 0.5% growth in the first quarter. Commenting [...]

July 11, 2011 | 0 Comments More
BoE policymaker supports low interest rates

BoE policymaker supports low interest rates

One of the members of the Bank of England’s Monetary Policy Committee (MPC), Paul Fisher, has argued that the central bank is right to keep interest rates low. His comments come despite leading business groups urging the bank to lift rates to combat soaring inflation, which is currently more than double its 2% target. Last [...]

June 21, 2011 | 0 Comments More
Policymaker against lifting interest rates

Policymaker against lifting interest rates

Policymaker Paul Fisher has said the Bank of England is right not to have lifted interest rates from their current low of 0.5%, suggesting the economy is still too fragile. His comments in the Daily Mail come despite calls from business groups to raise interest rates to curb inflation – which is currently running at [...]

June 2, 2011 | 0 Comments More
Scotland’s economy stalls in Q1

Scotland’s economy stalls in Q1

April 14, 2011 | 0 Comments More
BCC survey suggests worrying outlook for UK economy

BCC survey suggests worrying outlook for UK economy

According to the latest Quarterly Economic Survey from the British Chambers of Commerce (BCC), the recovery remains fragile. The survey, which polled 6,000 firms, found that companies still face cash flow problems and 80% of manufacturers said the cost of raw materials means they are under pressure to lift prices. The manufacturing sector has been [...]

April 5, 2011 | 0 Comments More
EEF urges Bank to keep interest rates on hold

EEF urges Bank to keep interest rates on hold

The Engineering Employers’ Federation (EEF) is urging the Bank of England’s Monetary Policy Committee (MPC) to keep interest rates on hold when it meets later this week. The manufacturers’ trade body believes the economy is too fragile and the MPC should delay interest rate hikes until later in the year when the recovery is secure. [...]

April 4, 2011 | 0 Comments More
UK interest rates and QE remain on hold

UK interest rates and QE remain on hold

The Bank of England’s Monetary Policy Committee (MPC) has today elected to keep UK interest rates on hold at the historically low level of 0.5%, as widely expected. Interest rates have now been at this low level since March 2009 - when the economy was in the midst of recession. Recent figures showed the economy [...]

March 10, 2011 | 0 Comments More
BCC urges Bank to keep rates on hold this month

BCC urges Bank to keep rates on hold this month

Leading business group, the British Chambers of Commerce (BCC), is urging the Bank of England not to increase interest rates this week. The Monetary Policy Committee (MPC) will commence its two-day meeting tomorrow and while many have called on the Bank to hike rates to combat stubbornly high inflation, the BCC is calling on the [...]

March 8, 2011 | 0 Comments More
BRC: Retail sales down in February

BRC: Retail sales down in February

Retail sales fell last month - providing further evidence of a fragile economic recovery. According to the British Retail Consortium (BRC)/KPMG retail sales monitor, like-for-like sales fell 0.4% in February on an annual basis after a 2.3% rise in January. The trade body attributed the fall to the ongoing squeeze on household incomes as fears [...]

March 8, 2011 | 0 Comments More
BCC: Economic growth to slow in Q4

BCC: Economic growth to slow in Q4

The British Chambers of Commerce (BCC) has today warned of a fragile economic recovery in the UK with growth expected to slow in the final quarter of 2010. There has been suggestions that economic growth will be severely hampered because of the Government’s massive spending cuts. There is a possibility that the Bank of England’s [...]

January 11, 2011 | 0 Comments More
Bank of Japan keeps interest rates at record low

Bank of Japan keeps interest rates at record low

The Bank of Japan (BoJ) has today left interest rates at almost zero, in a bid to boost the economy and continue its battle against deflation. The Japanese recovery has been faltering of late and exports, a crucial driver for economic growth, continue to slow. In addition, a strong yen could be damaging for the [...]

December 21, 2010 | 0 Comments More
Former MPC member believes UK still at risk of double dip

Former MPC member believes UK still at risk of double dip

Professor David Blanchflower, a former member of the Bank of England’s Monetary Policy Committee (MPC), has once again said massive spending cuts introduced to deal with the budget deficit could push the UK back into a recession. In June, and again last month, Mr Blanchflower warned the coalition Government that tough spending cuts could pose [...]

October 18, 2010 | 0 Comments More
Leading economist fears for future of euro

Leading economist fears for future of euro

Nobel prize winner, Joseph Stiglitz, has expressed his concern for the euro and the euro zone’s fragile recovery. Sixty-seven-year-old Stiglitz, the former chief economist of the World Bank, warned that the future of the single currency is bleak, while the region’s recovery is threatened by a series of austerity measures, which have been introduced by [...]

October 3, 2010 | 0 Comments More
Former MPC member believes UK still at risk of double dip

Former MPC member believes UK still at risk of double dip

Professor David Blanchflower, a former member of the Bank of England’s Monetary Policy Committee (MPC), has today said he still doesn’t rule out a double dip recession. In June, Mr Blanchflower, who is professor of economics at Dartmouth College in the US, warned the coalition Government that tough spending cuts could pose a threat to [...]

September 21, 2010 | 0 Comments More
Britain’s trade unions support strikes against austerity measures

Britain’s trade unions support strikes against austerity measures

It has been announced that the tough austerity measures introduced by the coalition Government are set to lead to industrial action following a trade union gathering in Manchester today. At the annual Trades Union Congress (TUC) meeting, union leaders urged delegates to “stand up and fight” against the massive spending cuts. The motion was supported [...]

September 13, 2010 | 0 Comments More
EU upwardly revises 2010 growth forecast

EU upwardly revises 2010 growth forecast

It appears the European Commission is optimistic about the euro zone’s growth prospects after lifting GDP forecasts. According to the Commission, growth of 1.8% in the EU for 2010 is expected - slightly higher than its previous estimate of 1%. Meanwhile, for the 16-member euro zone, it is forecasting growth of 1.7% - up from [...]

September 13, 2010 | 0 Comments More
US housing starts fall, building permits up

US housing starts fall, building permits up

The Commerce Department has today revealed US housing starts plummeted in June - far more than expected, raising fears for the already fragile housing market. According to the Commerce Department, construction of new US homes fell 5% in the month to a seasonally adjusted annual rate of 549,000 properties – the lowest since October 2009 [...]

July 20, 2010 | 0 Comments More
US billionaire investor: Risk of European double-dip recession

US billionaire investor: Risk of European double-dip recession

Speaking at a banking conference in Vienna recently, US multi-billionaire investor George Soros said a double-dip recession cannot be ruled out. A so-called double-dip recession, whereby the economy goes into recession twice without having undergone a full recovery in between, is almost inevitable in Europe next year, as credit problems are forcing European countries to [...]

June 16, 2010 | 0 Comments More
OBR set to downgrade UK growth prospects

OBR set to downgrade UK growth prospects

The newly-established Office of Budget Responsibility (OBR) is scheduled to publish growth forecasts later and they are likely to be much lower than the previous Labour Government’s predictions. According to economists, the OBR, which is led by former Treasury official Sir Alan Budd, is expected to say ex-Chancellor Alistair Darling’s 2011 forecast of 3% - [...]

June 14, 2010 | 0 Comments More