Tag: quantitative easing

Annuity rates plummet due to money-printing

Annuity rates plummet due to money-printing

Annuity rates have fallen by 7 per cent in just three months according to MGM Advantage, the retirement income specialist. This means that a 65 year old man with pension savings of A?50,000 would receive a retirement income of A?2,579 a year from the annuity they purchased with their pension pot, compared with A?2,778 in […]

October 11, 2012 More
Rich have benefited most from quantitative easing

Rich have benefited most from quantitative easing

The Bank of England has admitted in a new report that the richest 5 per cent of UK households have benefitted the most from its quantitative easing (QE) programme. The Bank launched the programme in March 2009, in an effort to revive economic growth. In total it has bought A?375bn of government bonds, known as […]

August 24, 2012 More
Inflation falls to 2.8%

Inflation falls to 2.8%

Inflation fell to 2.8 per cent on the Consumer Prices Index in May, from 3 per cent in April, surprising economists who had not expected it to change. Inflation also fell on the Retail Prices Index, which includes housing costs, from 3.5 per cent in April to 3.1 per cent in June. Inflation is now […]

June 19, 2012 More
Bank of England votes against more economic stimulus

Bank of England votes against more economic stimulus

The Bank of England voted against a further round of quantitative easing, at its latest Monetary Policy Committee (MPC) meeting. Just one member, David Miles, voted for further asset purchase to encourage growth in the UK economy, while the other eight members voted to keep the Bank’s quantitative easing programme steady at A?325bn. The minutes […]

May 24, 2012 More
BoE holds interest rates and stops quantitative easing

BoE holds interest rates and stops quantitative easing

The Bank of England is holding the base rate at 0.5 per cent and has decided not to extend its quantitative easing (QE) programme following a A?50bn boost to the economy in February. The UK interest rate has now remained at 0.5 per cent for three years, despite high levels of inflation. Consumer Prices Index […]

May 10, 2012 More
Pensioners hammered by QE and rising living costs

Pensioners hammered by QE and rising living costs

The value of final salary pension schemes has been slashed by A?90 billion due to the governmenta��s latest round of quantitative easing (QE), the National Association of Pension Funds (NAPF) warns, while pensioners’ incomes have also been hit by soaring living costs. A new study by LV= suggest that pensionersa�� day-to-day living costs have increased […]

March 8, 2012 More
Inflation down to 3.6% in January

Inflation down to 3.6% in January

Inflation fell sharply in January to 3.6 per cent on the Consumer Prices Index (CPI), from 4.2 per cent in December, according to the latest official figures. Retail Prices Index (RPI) inflation, which includes housing costs such as mortgage interest and council tax, fell to 3.9 per cent from 4.8 per cent. Although CPI inflation […]

February 14, 2012 More
Bank of England to launch A?50bn economic stimulus

Bank of England to launch A?50bn economic stimulus

The bank of England is expected to launch another round of quantitative easing (QE) this week, in the hope of preventing the UK falling into another recession, after the economy contracted by 0.2 per cent at the end of last year. The bank is likely to pump at least A?50 billion into the economy by […]

February 6, 2012 More
Gap between rich and poor cities to widen

Gap between rich and poor cities to widen

The economic gap between cities doing relatively well during the economic downturn and those that have been hard hit by the recession, is expected to widen. A report by the Centre for Cities, a research and policy organisation focused on improving the economic performance of UK cities, suggests that a combination of weak growth in […]

January 23, 2012 More
Pensions hit by low annuity rates

Pensions hit by low annuity rates

People who retire this year will be A?3,000 worse off than those who retired four years ago because factors such as the credit crunch, the recession and the eurozone crisis have pushed down annuity rates to a record low. Annuity rates fell by eight per cent in 2011, which was the fourth consecutive year of […]

January 11, 2012 More
Economists forecast deeper UK recession

Economists forecast deeper UK recession

The UK economy is expected to contract by 1.3 per cent in 2012, according to respected economists at Standard Chartered bank. Growth of 0.6% had been predicted but Standard Chartereda��s latest survey, of 350 companies, points to a sharp recession in the face of the ongoing eurozone crisis. The eurozone economy is expected to contract […]

December 12, 2011 More
UKa��s economic recovery to take five years

UKa��s economic recovery to take five years

The UKa��s economy will take five and a half years to recover to pre-recession levels according to Martin Weale, a member of the Bank of Englanda��s Monetary Policy Committee. Speaking to the National Institute of Social and Economic Research, Mr Weale said that the recovery “unusually slow” and indicated that the Bank could enact more […]

November 25, 2011 More
BoE Governor: QE may not boost lending

BoE Governor: QE may not boost lending

Mervyn King, the Bank of Englanda��s Governor, has confessed that the latest round of stimulus is not guaranteed to boost lending to SMEs. The ongoing lack of credit to SMEs has been a major concern for the Government as these companies are the key to job creation in the UK and are expected to be […]

October 25, 2011 More
Nationwide: UK consumer confidence slips further in September

Nationwide: UK consumer confidence slips further in September

The latest survey from the Nationwide Building Society has revealed a fall in UK consumer confidence for the month of September. The building societya��s consumer confidence index fell for the fourth consecutive month, falling by 3 points to 45 in September a�� hovering dangerously close to the all-time low of 41. Furthermore, it is 10 […]

October 21, 2011 More
ONS: UK retail sales up 0.6% in September

ONS: UK retail sales up 0.6% in September

The Office for National Statistics (ONS) has today revealed UK retail sales beat forecasts in September, led by spending on electrical goods such as laptop computers. According to the Statistics Office, sales rose by 0.6% last month, reversing the 0.4% fall in August. Furthermore, the figure was 0.6% higher on an annual basis. Retail sales […]

October 20, 2011 More
BoE minutes: MPC unanimous over fresh round of QE

BoE minutes: MPC unanimous over fresh round of QE

Minutes of the Bank of Englanda��s October 5-6 meeting have been released today and have revealed all nine members of the Monetary Policy Committee (MPC) voted to keep interest rates at the historic low of 0.5%. This was the third consecutive month that the Committee voted unanimously to keep rates at the record low, despite […]

October 19, 2011 More
Item Club warns of euro zone crisis impact

Item Club warns of euro zone crisis impact

Leading think tank, the Ernst & Young Item Club, has warned that growth within the UK economy is a�?grinding to a halta�? because of the euro zone debt crisis. The Item Club also warned that the quantitative easing (QE) measures, announced recently by the Bank of England, are unlikely to boost the recovery. Its comments […]

October 17, 2011 More
UK trade deficit narrows in August

UK trade deficit narrows in August

The Office for National Statistics (ONS) has today revealed the UK trade deficit narrowed in August as export values hit an all-time high and imports fell. The goods trade gap shrank to A?7.77 billion in August from A?8.15 billion the previous month, said the ONS. Total exports of goods reached A?25.5 billion, led by fuels […]

October 13, 2011 More
BCC downgrades UK economic growth

BCC downgrades UK economic growth

The British Chambers of Commerce (BCC) has today said the fresh round of quantitative easing (QE) announced by the Bank of England last week may not be enough to prevent the economy from slipping back into recession and a�?more radical measuresa�? are required. BCC Chief Economist David Kern said in an e-mailed statement in London […]

October 11, 2011 More
Weak UK factory output suggests poor start to Q3

Weak UK factory output suggests poor start to Q3

The Office for National Statistics (ONS) has today revealed UK factory output fell 0.3% in August on a monthly basis. The reading was worse than economists had expected and confirm weak prospects for the economy after the figures suggest a poor start to the third quarter. On an annual basis, meanwhile, factory output was 1.5% […]