UK rates

bank of EnglandTC

End of rate hikes in sight in UK

Ulrike Kastens (DWS) | The Bank of England raised interest rates yesterday by another 25 basis points to 5.25%, the highest level in 15 years. The key factors were labour market tightness and stronger wage growth, while developments in base rates and services prices are in line with the central bank’s expectations. Overall, the message of today’s press release is much more balanced than that of the previous meeting in…


BankofEngland

BoE Leaves Rates On Hold Despite Brexit Concerns

It came as a surprise for market makers: the Bank of England left borrowing costs at 0.5% on Thursday in spite of the Brexit fears. Also, the central bank will keep the size of the Asset Purchase Programme at £375 billion and hinted it could launch a stimulus package in August. The pound spiked to two-week high and FTSE 100 turned negative after the announcement.


George Osborne

UK Budget: Summertime Love

LONDON | July 9, 2015 | UBS | At one simplistic level the UK budget contained only ‘small’ news, with the net borrowing forecasts not changing too much. But the reality was this was a budget with a huge number of important announcements. For one, it reduced the near-term pace of fiscal consolidation. For another, it spelt out how the government intends to reduce the size of the welfare state.