UK Economy

Can inflation continue to fall, in line with the Bank's own forecasts, and therefore ultimately justify growing expectations that the Bank is about to end the hiking cycle?

The British Pound fell against the Euro and Dollar following the release of inflation figures that notably undershot expectations and signalled the pressure on the Bank of England to raise interest rates has receded notably.

The British Pound was under pressure in midweek trade following the release of data that showed an unexpectedly sharp decline in economic growth in July.

The British Pound moved higher against the Euro and Dollar after UK wage data came in stronger than expected, although signs of rising unemployment means the Bank of England might be able to pause its interest rate hike cycle in the final quarter of the year.

The demand for labour at UK businesses has fallen sharply in a signal the labour market is cooling, which should allow the Bank of England to press the pause button on its interest rates hiking campaign say economists.

Inflation expectations at UK businesses have turned meaningfully lower according to a regular survey conducted by the Bank of England and the University of Nottingham.

The Bank of England's inflation problem is not going to fade as fast as it hopes according to new data that reveals the UK labour market remains strong and consistent with churning out inflation levels above the Bank's own forecasts.

A major revision to the UK's GDP statistics reveals the country is no longer a laggard when compared to its major rivals with the economy now firmly above pre-pandemic levels.

Business confidence rallied to an eighteen-month high in August, led by a rebound in economic optimism, according to the Lloyds Business Barometer.

Pound Sterling exchange rates fell widely in midweek trade after respondents to S&P Global surveys cited high interest rates and other headwinds for an August softening of business conditions in the services industry underpinning the domestic economy with possible implications for Bank of England (BoE) interest rate policy.  

Pound Sterling climbed against the Dollar, Euro and a selection of other currencies on Tuesday after Office for National Statistics (ONS) figures painted a less bleak picture of the public finances for the recent month and in turn led economists to contemplate how the government might respond to any calls for tax cuts in the Autumn budget. 

Pound Sterling eased from recent highs against the Euro, Dollar and other currencies in the final session of the week after retail sales were reported to have fallen further than expected in July with declines seen across most product categories but partially attributed to rainy and overcast weather during the period.

Pound Sterling edged higher against many counterparts after Office for National Statistics (ONS) data indicated continued record growth in wage packets during June but also confirmed what appear to be cracks emerging in the overall labour market. 

Official measures of supply and demand suggest an economy growing faster than many expected including the Bank of England (BoE), leading to forecast upgrades in some parts this week and increased uncertainty about the outlook for interest rates. 

A business investment boom might be underway in the UK as businesses utilise their considerable cash balances amidst an improved political landscape and despite rising interest rates.

The UK economy was firmly back in growth territory in June according to the latest GDP figures from the ONS which also revealed a solid uptick in quarterly and annual growth.

One of the UK's largest recruiters reports a sizeable increase in job vacancies being advertised by the government.

The Bank of England can be increasingly confident the impact of previous interest rate hikes are having an impact as British businesses reported in July that their expectations for inflation had fallen to an eleven-month low, while hiring intentions also fell.

Salaries being offered to new starters in London's financial services industry are down sharply, raising hopes that a wage-lead inflation spiral is unlikely.

Pound extends recovery against Euro & Dollar, UK consumer confidence at 18-month peak.