Starmer ally defends minimum wage quango after Sunak calls for it to be axed June 9, 2026 Welfare secretary Pat McFadden has leapt to the defence of the minimum wage quango after former Prime Minister Rishi Sunak called for the body to be axed. The top ally of Sir Keir Starmer told Morning Wire it “would be a mistake” to abolish the Low Pay Commission (LPC), an independent body that advises the [...]
Andrew Bailey warns on AI: ‘Everybody is currently priced to be a winner’ June 2, 2026 Bank of England governor Andrew Bailey has suggested that the UK’s growth hopes hinge on productivity gains from a mass AI technology roll-out although he warned that investment levels carried “substantial risks” for market prices. Bailey, who is also the head of the Financial Stability Board, an international body overseeing markets, echoed deputy governor Sarah [...]
Borrowing costs fall as interest rate hike fears ease June 2, 2026 Government borrowing costs fell sharply on Tuesday, after a dovish speech from Bank of England governor and revived hopes of a Middle East peace deal led traders to pare back bets on central bank interest rate hikes. Gilts rebounded across the curve, outperforming their European peers. The UK’s two-year and 10-year government bonds fell as [...]
House prices will fall by two per cent this year – the most since the financial crisis June 1, 2026 House prices will fall by two per cent for the first time since the financial crisis this year, according to Savills, which warned mortgage hikes as a result of the Iran war had “fundamentally changed the outlook for the housing market”. The property giant was forced to revise down its property price forecast for 2026 [...]
Bank of England’s Bailey: Interest rates hike may not be needed May 29, 2026 The Bank of England may not raise interest rates in response to the Iran war and has already effectively tightened monetary policy by taking the prospect of future rate cuts off the table, governor Andrew Bailey has said. In a speech in Iceland, the central banking chief said that inflation is “likely to go higher” [...]
Reeves’ savings package to have minimal impact on inflation rise May 29, 2026 A discount campaign launched by Chancellor Rachel Reeves will “shave off” an expected rise in inflation, analysis has suggested, as economists have raised concern over Britons’ inflation expectations. Reeves’ move to delay a hike in fuel duty beyond September and offer VAT relief for businesses giving families reduced prices could strip 0.2 percentage points off [...]
Natwest and Barclays sweeten mortgage costs as Iran peace hopes ease interest rate fears May 29, 2026 Natwest and Barclays have become the latest lenders to sweeten up their mortgage deals, as hopes remain high that a peace deal will be reached in the Middle East that would bring calm to the interest rate environment. Both lenders have unveiled reductions in mortgage rates, with Barclays cutting its rates across the board by [...]
End quantitative tightening now May 26, 2026 Ending active quantitative tightening is not monetary loosening. The Bank must stop adding avoidable pressure to the gilt market.
Top Bank of England officials warn Reeves against supermarket price cap May 20, 2026 Senior Bank of England officials have warned that price controls on essential goods are not an effective long-term tool to lower the cost of living, after it emerged the Treasury was pushing supermarkets to commit to cap prices of consumer staples. Speaking at a Treasury Committee appearance, governor Andrew Bailey told MPs that controlling the [...]
As it happened: FTSE 100 rises as oil slips; Analysts warn of ‘short-lived’ inflation drop May 20, 2026 Good morning and welcome back to the Morning Wire liveblog. The City has welcomed news of undershooting inflation this morning, but warning signs already suggest it’s a temporary blip. The Consumer Price Index rose 2.8 per cent in the 12 months to April, that’s under the three per cent pencilled in and a major drop [...]