Morning Wire’s Christmas quiz: How well do you remember 2019? December 26, 2019 Hello and welcome to Morning Wire’s Christmas quiz of 2019! You’ve eaten more than your fill of turkey, endured your uncle’s excruciatingly detailed explanation of his plans for a new shed, and played as many games of charades as you can possibly manage without exploding at your cousin, who has apparently never seen Jaws. So [...]
UK GDP growth revised up but ‘shows underlying slowing of economy’, ONS December 20, 2019 A revised estimate showed UK gross domestic product (GDP) grew by 0.4 per cent in the third quarter of 2019 showing an underlying slowing of the UK economy. This was higher than the expected 0.3 per cent but reflected high domestic and global uncertainty, the Office of National Statistics (ONS) said today in its quarterly [...]
The economics of gift giving: It probably isn’t worth it December 20, 2019 It is Christmastime, which means that on Tuesday I will be frantically rushing around doing some very last-minute shopping and attempting to wrap presents. I have a pretty good idea what I’m going to buy people this year, although my young nieces are proving to be particularly tricky. As I’ve never been a four-year-old girl, [...]
Bank of England holds interest rate at 0.75 per cent December 19, 2019 The Bank of England has decided to hold interest rates at 0.75 per cent in its last meeting of 2019 as it warned there was little chance of significant economic growth this quarter. The Bank’s Monetary Policy Committee (MPC) voted 7-2 in favour of maintaining the rate, as it did at its previous meeting in [...]
Will the Bank of England cut interest rates? December 18, 2019 UK inflation data came out today, leaving economists to ponder whether the Bank of England would consider cutting or raising interest rates before the end of 2019 or even early into 2020. The Consumer Prices Index stood at 1.5 per cent in November, flat on October and half a per cent below the Bank of [...]
UK inflation rate holds steady at 1.5 per cent December 18, 2019 UK inflation remained steady at 1.5 per cent in November, marking no change from October, according to official data released today. While the figure is slightly higher than expectations of 1.4 per cent, it remains below the Bank of England’s target of two per cent. The Consumer Prices Index (CPI) saw its biggest contributions from [...]
A lesson in cognitive dissonance for the Corbynites December 18, 2019 Behavioural economics — which extends the ability of economics to explain the world — has become very fashionable. Richard Thaler, Nobel Prize winner for his work in this area, observed that most of the time, the rational choice model of standard economics works well. People gather information on the various alternatives open to them, and [...]
BoE: $5bn leaves Hong Kong funds amid protests December 17, 2019 Political unrest in Hong Kong has triggered traders to pull as much as $5bn (£3.8bn) of capital from the region since April, according to the Bank of England (BoE). The outflows account for nearly 1.25 per cent of Hong Kong’s GDP and began when protests broke out following the proposal of a controversial extradition bill [...]
Bank of England governor vacancy gets 650 applications on Linkedin December 17, 2019 The role of the governor of the Bank of England has piqued the interest of Linkedin users as one of the most viewed jobs in 2019. Current incumbent Mark Carney is leaving the role on 31 January, with big names like Financial Conduct Authority boss Andrew Bailey and City grandee Helena Morrissey in the running [...]
No-deal Brexit fears trigger sell-off of Barclays, Lloyds and RBS shares December 17, 2019 Shares in Barclays, Lloyds and Royal Bank of Scotland (RBS) all slumped in early trading after Boris Johnson brought back the spectre of a no-deal Brexit today. The trio failed to impress in yesterday’s Bank of England stress tests, where analysts warned that a strategy to double a 100-basis point capital buffer designed to protect [...]