British government to usher in new era of austerity in effort to restore market confidence

Chancellor of the Exchequer Jeremy Hunt arrives at the back entrance of Downing Street, London. Aaron Chown – Pa Images | Wall Images | Getty Images LONDON — New British Finance Minister Jeremy Hunt must weigh the country’s economic peril against his party’s political survival on Thursday as he delivers a long-awaited fiscal statement. Hunt … Read more

Bank of England raises rate by 75 basis points, biggest hike in 33 years

A passageway near the Bank of England (BOE) in the City of London, UK, on ​​Thursday, March 18, 2021. Hollie Adams | Bloomberg | Getty Images LONDON — The Bank of England on Thursday raised interest rates by 75 basis points, its largest single hike since 1989, but struck a dovish tone as policymakers looked … Read more

Bank of England set for biggest rate hike in 33 years, but economists expect dovish tilt

Buses pass in the City of London financial district outside the Royal Exchange near the Bank of England on 2nd July 2021 in London, United Kingdom. Mike Kemp | In Pictures | Getty Images LONDON — The market expects the Bank of England to raise interest rates by 75 basis points on Thursday, its largest … Read more

UK’s new finance minister scraps almost all planned tax cuts in a bid to appease markets

Jeremy Hunt is interviewed for Sophie Raworth’s ‘Sunday Morning’ at BBC Broadcasting House in London. Tejas Sandhu | Lightrocket | Getty Images LONDON — UK Finance Minister Jeremy Hunt used his first Monday on the job to announce that almost all of the controversial tax measures announced by his predecessor would be reversed. The major … Read more

UK’s new finance minister scraps almost all planned tax cuts in a bid to appease markets

Jeremy Hunt is interviewed for Sophie Raworth’s ‘Sunday Morning’ at BBC Broadcasting House in London. Tejas Sandhu | Lightrocket | Getty Images LONDON — UK Finance Minister Jeremy Hunt used his first Monday on the job to announce that almost all of the controversial tax measures announced by his predecessor would be reversed. The major … Read more

UK cliff edge arrives as Bank of England prepares to end bond buying

The Bank’s Financial Stability Committee on Sep. 28 announced a two-week emergency purchase program for long-dated UK government bonds. Bloomberg | Bloomberg | Getty Images LONDON — The Bank of England’s emergency bond-buying program draws to a close on Friday, with traders remaining on edge as volatility in the UK bond market looks set to … Read more

Brits are being hit by a wave of bad news

Pensioners protest over rising fuel prices at a demonstration outside Downing street called by The National Pensioners Convention and Fuel Poverty Action on February 7, 2022 in London, England. Guy Smallman | Getty Images LONDON — “The brains of humans and other animals contain a mechanism designed to give priority to bad news,” former Nobel … Read more

European markets open to close; sterling slumps against the dollar

UK bond yields set for record monthly rise British government bond yields are on course for the biggest monthly rise recorded within Refinitiv and Bank of England data going back to 1957, a Reuters analysis found. The yield on 10-year gilts has risen 131 basis points so far in September, with a sell-off intensifying Friday … Read more

Bank of England hikes, says UK may already be in recession

The Bank of England raised rates by 0.5 percentage points Thursday. Vuk Valcic | SOPA Images | LightRocket | Getty Images LONDON — The Bank of England voted to raise its base rate to 2.25% from 1.75% on Thursday, lower than the 0.75 percentage point increase that had been expected by many traders. Inflation in … Read more