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Wednesday 19 January 2011

Economics

The latest news, analysis and comment on the UK and global economy.

Economics news

Record manufacturing data lifts Britain's recovery hopes

UK manufacturing growth hit a 16-year high in December as the weak pound drove exports, providing fresh hope that Coalition plans for a rebalancing of the economy are paying off.

More Economics news

BoE under pressure to raise rates

The Bank of England is facing its sternest test in more than a year after inflation rocketed above expectations, piling pressure on policy makers to raise rates just as austerity measures strike.

18 Jan 2011

Inflation: what the analysts said

Inflation jumped to 3.7pc in December, fuelling concern among economic analysts.

18 Jan 2011

Borrowers have had their time in the sun, this is the year of the Bank Rate rise

When it comes to an increase in the official Bank Rate it is clearly no longer a question of if. Neither is it a question of when.

18 Jan 2011

Inflation will costs OAPs £700 a year

Pensioners will be hardest hit by rising inflation, with figures suggesting that those over 65 will lose more than £700 a year..

18 Jan 2011

Surge in cost of food and fuel pushes inflation above forecasts

Inflation pushed up far more than expected in December to an eight-month high of 3.7pc, well above the Bank of England's own forecasts.

18 Jan 2011

Rate rises are coming, households should prepare

Inflation is back. There is no denying it now. Prices rose 3.7pc last month, well above the consensus forecast of 3.4pc and higher even than the Bank of England’s prediction of a 3.6pc peak in the coming months.

18 Jan 2011

Don't focus on short-term inflation, says BoE's Fisher

The Bank of England must not get too concerned about short-term inflation and set monetary policy for the longer term, Paul Fisher, the BoE's executive director for markets, said in a newspaper interview.

18 Jan 2011

Inflation hits 8 month high - market reaction

Inflation soared to 3.7pc in December. Analysts discuss what this means for the Bank of England and interest rates looking ahead.

18 Jan 2011

EU finance ministers back bigger bailout fund

European finance ministers have increased their support for a bigger rescue fund for debt-laden eurozone countries, but it could be March before a package of wider changes would be approved.

18 Jan 2011

Goldman shuns BRICs for Wall St

Goldman Sachs has issued a short-term alert on China and India as inflation rears its ugly head, advising clients to rotate into Wall Street and Old World bourses as a safer bet over coming months.

18 Jan 2011

Consumers more upbeat about economy

Consumer confidence rose for the first time in four months during December as people felt slightly less pessimistic about the future of the economy and the jobs market.

18 Jan 2011

New age of intervention in food prices

Worries over food prices are gathering pace and triggering alarm among politicians across the world. For there is nothing more likely to bring down a government than ignoring starving citizens.

17 Jan 2011

E&Y takes Cameron to task over inflation comments

The Prime Minister has been chastised by one of the country's leading economists for interfering in the debate over soaring inflation.

17 Jan 2011

EMU policies are pushing Southern Europe into systemic political crisis

Let us assume for the sake of argument that Europe succeeds in containing the immediate EMU debt crisis, with help from Asia, and that Germany’s fractious coalition actually agrees to a bail-out fund big enough to make any difference.

16 Jan 2011

German coalition split over EU's bail-out fund

Members of Angela Merkel's coalition are resisting plans for an increase in the EU's bail-out fund, ahead of Monday's crucial meeting of EU finance ministers.

16 Jan 2011

Housing market toughens for first-time buyers

Housing affordability is at near-record levels but first-time buyers will find it harder to buy because mortgage lending has tightened.

16 Jan 2011

Irish lenders besiege ECB for loans

Irish banks are running out of collateral they can use to borrow from the European Central Bank, turning instead to their own central bank on an unprecedented scale.

16 Jan 2011

Illusions that imperil the future of China and the West

Mr Li Keqiang, China’s vice-premier, expected to take over as premier in 2012, has now returned home after an apparently successful visit here which included signing some large trade agreements. The UK Government is pleased with itself. Let us hope that its optimism about our trade relations with China proves justified. But I am sceptical.

16 Jan 2011

Merkel dampens EU bail-out hopes

European finance ministers meet in Brussels tomorrow to discuss increasing the bail-out fund for the region's stricken banks, amid calls to overhaul their strategy for helping debt-ridden countries.

16 Jan 2011

Bank bail-out adds £1.5 trillion to debt

Britain's public debt is set to soar from under £1 trillion to more than double that landmark figure when official figures are updated this month to take into account the impact of the banking bailout.

16 Jan 2011

Hedge funds bet China is a bubble close to bursting

The world is looking to China as a springboard out of recession - but some hedge funds are betting the country's credit and growth levels cannot be sustained.

16 Jan 2011

Bank of England must 'hold nerve' on interest rate rise

Bank of England policy-makers must “hold their nerve” and leave interest rates at the current record low, according to a leading forecaster.

16 Jan 2011

Davos 2011: who's on the guestlist

The Duke of York captured the mood at last year’s Davos gathering of the rich and influential as well as anybody.

15 Jan 2011

UK interest rates could rise by June

Rates will start rising - earlier than had been expected - after a surprise jump in inflation, a move that would help savers.

14 Jan 2011

An interest rate rise would put factories at risk

Let's face it, it's not exactly a dream job, hanging round factory gates in all weathers counting the cost of raw materials.

14 Jan 2011

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