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UK Economy

UK Retail Sales Growth Stumbles in November Despite Budget Concerns

British retail sales grew at a weaker-than-expected 0.2% in November, according to official data released on Friday by the Office for National Statistics, reports Reuters. This follows a 0.7% drop in October, leading up to Chancellor Rachel Reeves' first budget. Economists had anticipated a 0.5% monthly

Bank of England Expected to Keep Interest Rates Steady

The Bank of England is widely anticipated to maintain interest rates at their current level of 4.75% at a meeting later today, reports the BBC. This decision comes despite inflation rising for the second consecutive month to 2.6% in the year to November, exceeding the Bank's

UK Factories Plunge into Recession, Adding to Economic Woes

British manufacturers experienced their sharpest decline in output since the COVID-19 pandemic in late 2020, signaling a deepening economic slowdown, reports Reuters. The Confederation of British Industry's (CBI) monthly industrial trends survey, released Wednesday, revealed a significant drop in output and a darkening outlook for the sector. The

UK Inflation Hits Eight-Month High, but Services Inflation Holds Steady

British inflation surged to an eight-month high in November, reaching 2.6%, as reported by Reuters. However, the rise in services prices, a key indicator of underlying inflationary pressures closely watched by the Bank of England (BoE), remained steady at 5.0%, offering some respite to the central bank. The

BOE's Cautious Approach to Rate Cuts Ends Year of Unfulfilled Expectations

The Bank of England (BOE) is set to conclude 2024 with interest rates a full percentage point higher than initially predicted by market analysts, according to a reported published by Bloomberg. While the central bank is expected to keep rates unchanged at its meeting on Thursday, marking the end of

UK Economy Contracts for Second Consecutive Month

Britain's economy shrank for the second consecutive month in October, marking the first back-to-back monthly declines since the onset of the COVID-19 pandemic, reports Reuters. This setback comes as the new Labour government prepares for its first budget and presents a challenge for Finance Minister Rachel Reeves. Gross

Bank of England Governor Calls for Stronger UK-EU Ties Post-Brexit

Bank of England Governor Andrew Bailey has issued a call for the UK to "rebuild relations" with the European Union, marking his strongest public comments yet on the impact of Brexit, reports the BBC. While emphasizing that he takes "no position on Brexit per se," Bailey

Bank of England Cuts Rates, But Sees Higher Inflation After Budget

The Bank of England (BoE) cut interest rates on Thursday for only the second time since 2020, but signaled that future reductions would be gradual, citing the impact of the new government's first budget, reports Reuters. The Monetary Policy Committee voted 8-1 to lower rates to 4.75%

UK Gilt Yields Rise as Government Hints at Fiscal Rule Changes

The UK government's borrowing costs have risen on global financial markets, following news that Chancellor Rachel Reeves is considering changes to Britain's debt rules, reports The Guardian. Reeves, ahead of next week's budget, is expected to announce at the International Monetary Fund's