Friday, 24 November, 2017

Bank of England hikes rates for first time in 10 years

BRITAIN-POLITICS-ECONOMY-FINANCE-BOE Bank governor Mark Carney voted against a rate hike at the last meeting
Heather Davidson | 05 November, 2017, 02:18

Britain's economy appears to be picking up speed, according to a survey on Friday that will reassure the Bank of England a day after it raised interest rates for the first time in a decade.

A number of banks and building societies have already announced they will be increasing their rates in line with the rise announced by the Bank of England today.

A reduction in interest rates makes saving less attractive and borrowing more attractive, which stimulates spending.

In 2017 the British economy has been the slowest growing economy in the EU.

"Market uncertainty has impacted both the residential and commercial development pipeline in London and the South East, which have been stuck in limbo since last year's European Union referendum, and if this measure can bring down inflation, particularly in construction costs, this is good news".

But the Bank also said its forecasts are based on the assumption of a "smooth adjustment" of the United Kingdom economy to Brexit, something that has been thrown into increasing doubt by the failure of the Government to make any substantive progress in its Article 50 divorce negotiations with the European Union.

Monthly data on Britain's dominant services industry, expected at 0930 GMT on Friday, may provide more clues about the health of the economy and the outlook for further hikes.

Some predict rates could rise again as soon as February, but others expect there will be a pause until at least later in 2018.

When there is more demand for goods and services than there is supply, inflation tends to rise above 2%.

Bank of England policymakers voted by a majority of 7-2 to raise rates by 25 basis points from a record-low 0.25 per cent after a regular gathering, mirroring policy tightening seen in the United States and eurozone.

"This month's MPC decision is an important signal to the public that the era of very low interest rates is coming to an end".

Generally, higher interest rates encourage saving by raising the incentive to put money in the bank. The opposite occurs when interest rates are increased. However, it is now mulling a gradual path of monetary policy tightening to combat inflation rising far above the central bank's 2 per cent target.

The move reverses the cut in August of past year - made in the wake of the vote to leave the European Union.

Consumer Prices Index (CPI) inflation hit 3% in September - its highest level for more than five years - and the Bank has warned it could rise further still. The economy has proven more resilient than feared, but has clearly weakened.

The bank's Monetary Policy Committee (MPC) voted for the rise at a majority of 7-2.

In its Quarterly Inflation Report, released with the announcement on rates, the Bank estimated inflation was likely to peak this month at 3.2%.

Sterling is set to remain volatile due to Brexit uncertainty.

Recommended

  • Bush 41 calls Trump a 'blowhard'; White House strikes back

    Bush 41 calls Trump a 'blowhard'; White House strikes back

    Ex-President George W Bush has criticised Donald Trump , saying "this guy doesn't know what it means to be President". Bush's parents were clearly disturbed by the influence of Vice President Dick Cheney and neoconservative advisers.
    Overwatch Adding New Character Moira,

    Overwatch Adding New Character Moira, "Ambitious" Talon Geneticist

    Most significant is the newest member of the game's playable roster of characters, as the hero Moira was announced. Coalescence- Moira channels a long-range beam that both heals allies and bypasses barriers to damage her enemies.
    Colorado shooting: 'Nonchalant' gunman kills three

    Colorado shooting: 'Nonchalant' gunman kills three

    A spokesman for the Thornton Police Department could not be immediately reached by AFP. "The employees started screaming". Thornton Police Department spokesman Victor Aliva said there was no indication as to motive at this stage.
  • HTC will launch dual rear camera smartphone in 2018

    HTC will launch dual rear camera smartphone in 2018

    Though here, as with the U11, it can either trigger Google assistant or Alexa, rather than having to call them out by name. Edge Sense, the squeeze-to-use tech that's becoming all the rage in the smartphone world, is still an enviable feature.
    Joel Matip Doubles The Lead VS West Ham

    Joel Matip Doubles The Lead VS West Ham

    Asked after Saturday's defeat if he still had West Ham's backing, Bilic told BT Sport: "It's hard for me to talk about that now". Performing at the highest level for both club and country, Salah is as important to Liverpool as his counterpart Mane.
    Catalan leaders due before Madrid court on rebellion charge

    Catalan leaders due before Madrid court on rebellion charge

    This led to the Prime Minister of Spain Mariano Rajoy dissolving the regional parliament and calling a snap election for December. A Spanish judge has jailed eight ousted Catalan ministers, after the region attempted to declare independence .
  • Kohli has faith in India's batsmen despite Rajkot reverse

    Kohli has faith in India's batsmen despite Rajkot reverse

    Munro, whose unbeaten 58-ball 109 fetched him the Man of the Match award, said the century was a reward for taking his chances. The Auckland batsman never let up, though, and powered on to his hundred as New Zealand amassed 196-2 in their 20 overs.
    Justin Bieber, Selena Gomez He Pursued Her ... And it Took Some Convincing

    Justin Bieber, Selena Gomez He Pursued Her ... And it Took Some Convincing

    However, various sources have confirmed that the male singer reached out to Gomez after he learned of her kidney transplant . Bieber and Gomez began dating in 2011, and had an on and off relationship until 2014, when they finally called it quits.
    Evra suspended after scuffle with home fan, to be disciplined

    Evra suspended after scuffle with home fan, to be disciplined

    In a video posted on social media, Evra can be seen executing a Kung-Fu style kick on an unsuspecting supporter and was immediately sent off by match official Tamas Bognar.
  • Actress Paz de la Huerta alleges Weinstein raped her twice

    Actress Paz de la Huerta alleges Weinstein raped her twice

    Either way, they need collaboration from Manhattan prosecutors, who put the brakes on a 2015 investigation into Weinstein. She has publicly accused Weinstein of raping her twice in her apartment in 2010 and called police about it on October 26.
    UIDAI announces OTP based Aadhaar-Mobile linking from Dec 1

    UIDAI announces OTP based Aadhaar-Mobile linking from Dec 1

    The government in June had made Aadhaar mandatory for opening bank accounts as well as for any financial transaction of Rs 50,000 and above.

    Qualcomm Sues Apple As Their Ongoing Legal Battle Continues

    We asked Qualcomm for a statement, but the company declined to comment on the speculation that Apple may stop using its chips. It widened its suppliers to include Intel for some versions of the iPhone beginning with the 7 model.

Deposed Catalan leader urges separatist 'unity' for election Deposed Catalan leader urges separatist 'unity' for election The Catalan parliament was dissolved by the Spanish government last week after they officially declared independence from Spain. He had resigned from Mr Puigdemont's Cabinet in protest before the declaration of independence.

Trump campaign aide met Russian officials in 2016: NY Times Trump campaign aide met Russian officials in 2016: NY Times Sessions's participation in the gathering was detailed in court documents released Monday by special counsel Robert Mueller III. The revelations that Sessions may have made false statements under oath riled many top Democrats, especially Franken.

Sprint merger talks are over Sprint merger talks are over Shares of Sprint and T-Mobile tumbled Monday after rumors emerged that merger talks between the two companies were fizzling. But T-Mobile lobbed in a last minute counter offer and there was hope again that a deal could be salvaged.

Saudi Arabia intercepts missile fired at airport Saudi Arabia intercepts missile fired at airport More than two years on, the war against Houthi rebels has turned into a quagmire for the kingdom and its Arab allies. The missile was shot down and scattered debris over an uninhabited area without causing damage or casualties.

Manchester United's players deserve more credit, feels Jose Mourinho Manchester United's players deserve more credit, feels Jose Mourinho But he's an agent that I know well and normally he's very direct, very objective". I think Scott is going to be a great player and already is a great player.

Facebook vows to curb abuse amid soaring profits Facebook vows to curb abuse amid soaring profits He said this will inform "a higher standard of transparency than ads on TV or other media". "I'm dead serious", Zuckerberg said. Quarterly advertisement revenue has more than doubled since 2015, and is rising at more than 40 percent year over year.

Broadcom is reportedly interested in purchasing Qualcomm Broadcom is reportedly interested in purchasing Qualcomm The two companies are already among the top 10 providers of chips in an industry that's consolidating rapidly. A subsequent report in the Wall Street Journal said the bid could come as early as this weekend.

ISIS pushed from last major Iraqi stronghold ISIS pushed from last major Iraqi stronghold ISIS was pushed from Qaim on Friday, the terror group's last major stronghold in Iraq , according to the office of Prime Minister Haider al-Abadi.

Kidde Recalls More Than 40 Million Fire Extinguishers Kidde Recalls More Than 40 Million Fire Extinguishers The recall covers 134 models of push-button and plastic-handle extinguishers made from 1973 through August 15 of this year. This comes three years after a auto fire that turned fatal after a Kidde fire extinguisher failed to work.

Bitcoin Surges as CME Plans to Introduce Bitcoin Futures Bitcoin Surges as CME Plans to Introduce Bitcoin Futures In less than 10 years, bitcoin has come a long way from being "mined" in homes and predominately used to buy illegal goods online. This is not entirely surprising, especially not with a few big dips along the way after setting this new all-time high.

Obama promotes health care law on first day of sign-ups Obama promotes health care law on first day of sign-ups The increase in premiums will be felt most by the 15 percent of the exchange population that is not eligible for APTCs. In the Lehigh Valley, you could pay nothing but co-pays or deductibles for some low-priced bronze plans.

"Kiddie" fire extinguisher recalled after one death and 16 injuries This comes three years after a vehicle fire that turned fatal after a Kidde fire extinguisher failed to work. The affected models were sold in red, white and silver , and are either ABC or BC rated, the CPSC said .

RUSSIA INVESTIGATION - Identity of Papadopoulos contacts confirmed Sessions, however, did attend, and he and Papadopoulos sat next to each other, according to the source who was in the room. Papadopoulos continued to email high-ranking campaign officials about a request from Russian Federation to meet Trump.

Donna Brazile Confesses that DNC Rigged Primaries Donna Brazile Confesses that DNC Rigged Primaries Brazile throws her under an entire fleet of buses, a couple of Mack trucks, and a steamroller to boot. I had been wondering why it was that I couldn't write a press release without passing it by Brooklyn.

Buhari hosts APC Caucus meeting Buhari hosts APC Caucus meeting I'm not known to shy away from talking my mind and rebelling if it is necessary, and taking charge of things that I believe are necessary".