Tag: Bank of England
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UK inflation rises to 3.4% in December: what it means for the BoE and households
Inflation ticks up to 3.4% in December The UK’s inflation rate edged higher in December, rising to 3.4% according to the Office for National Statistics. This marked the first increase after five consecutive months of cooling, renewing attention on how price pressures are evolving as households continue to bounce back from earlier price shocks. While…
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UK inflation edges higher to 3.4% in December, delaying BoE move
UK inflation rises to 3.4% in December, adding pressure on the Bank of England Inflation in the United Kingdom rose in December for the first time in five months, reaching 3.4% and suggesting that the Bank of England (BoE) may hold interest rates steady in the near term. The latest data from the Office for…
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UK inflation ticks up to 3.4% in December, signaling no rate cut yet
UK inflation edges higher in December, ending a five-month decline Inflation in the United Kingdom rose for the first time in five months, with the Office for National Statistics reporting a December Consumer Prices Index (CPI) of 3.4%. The uptick from the previous month surprised some economists and has wide-ranging implications for consumers, businesses, and…
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Why I’m Not Cheering the Pre-Christmas Rate Cut: Focus on Inflation Over Hopes of Growth
Why the pre-Christmas rate cut isn’t a cause for celebration The move toward a pre-Christmas rate cut, while applauded by some as a lifeline for the economy, should be viewed with caution. The Bank of England’s Monetary Policy Committee (MPC) faces a delicate balance: support growth without letting inflation take a back seat. Right now,…
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Why I’m Not Cheering the Pre-Christmas Rate Cut: Inflation Must Come First
Why I’m not cheering the pre-Christmas rate cut Valiant though it is to support the economy, the MPC should be laser-focused on fighting inflation—especially now, with global investors who buy billions of pounds of UK government debt each month fast losing faith. The Bank of England’s decisions reverberate beyond the gilt market, shaping confidence in…
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Why I’m Not Cheering the Pre-Christmas Rate Cut
Why the timing matters The prospect of a pre-Christmas rate cut from the Bank of England’s Monetary Policy Committee is being pitched as a modest nudge for households and businesses. Yet the most pressing argument against it is simple: inflation remains the dominant foe. With consumer prices still stubbornly high in many sectors, a premature…
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First-time Buyers Take on Record £82bn in ‘Mega Mortgages’ as Lending Rules Lounge
Record lending for first-time buyers challenges conventional wisdom on affordability First-time buyers in the UK took on a record £82 billion of new mortgages in a sign that demand for property remains robust even as lending policies flex under pressure. The growth is being fuelled by the so-called “mega mortgages,” loans that stretch well beyond…
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First-time Buyers Take on Record £82bn in Mega Mortgages as Rules Relax
Record Lending to First-Time Buyers Marks a Turning Point First-time buyers are borrowing a record amount to enter the housing market, with lenders approving around £82bn in new mortgages deemed ‘mega mortgages’ due to their high loan-to-income ratios. The surge comes as regulatory tinkering and market dynamics push lenders to stretch affordability tests in pursuit…
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UK GDP August 2025: Modest Growth Keeps Economy on a Tight Path
UK GDP August 2025: A Slow but Positive Nudge The UK economy expanded by a modest 0.1% in August 2025, according to the latest release from the Office for National Statistics (ONS). This aligns with economists’ expectations for a subdued month of growth after a stronger first half of the year. The data underline a…
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BoE Warns of Growing AI Valuation Bubble and Potential Market Turbulence
BoE Flags Growing Risk in AI Valuations The Bank of England’s Financial Policy Committee has raised concerns about a rapid expansion in the valuations of leading artificial intelligence companies, warning that equity markets may be more vulnerable to a sudden correction than currently appreciated. In recent months, AI firms have seen eye‑watering increases in perceived…