UK pay on track to trail inflation for 15th month in a row as cost of living crisis bites March 13, 2023 Wages are on track to trail inflation for the 15th month in a row, underscoring how much pressure the cost of living crisis is piling onto household finances, official figures out on Tuesday are expected to show. Regular pay growth is projected to trim to 6.6 per cent over the three months to February, down [...]
If you can’t afford your mortgage: What the FCA’s lender guidance means for borrowers March 10, 2023 Successive interest rate rises are increasing mortgage costs for millions of borrowers, according to both regulators, lenders and advisers. One of the main City watchdog shas estimated an extra 356,000 mortgage borrowers could face payment difficulties by the end of June 2024, in addition to those who are already behind. The Financial Conduct Authority has issued final [...]
UK economy ‘bounces back’ in another signal a recession is off the table but experts warn of stagnation March 10, 2023 The UK economy “bounced back” from a sharp contraction over Christmas and is holding up better than feared in another sign the country could avoid a recession, official figures out today show. Gross domestic product (GDP) jumped 0.3 per cent in January, better than the consensus forecast of 0.1 per cent growth, according to the [...]
UK dodges recession but economy still poised to be below pre-Covid-19 size until end of 2024, BCC forecast March 9, 2023 The UK is poised to avoid a recession this year but suffer a slow burning economic slump that will leave GDP below its pre-pandemic level until the final months of next year, new forecasts out late last night claim. Stronger than expected household spending despite sky high inflation plaguing families’ finances will put the economy [...]
Bank of England risks tipping UK economy into recession with further interest rate hikes, MPC’s Dhingra warns March 8, 2023 The Bank of England risks tipping the UK economy into recession if it raises interest rates too aggressively and worsening the cost of living crisis, a top official said today. Swati Dhingra, an external member of the Bank of England rate setting monetary policy committee (MPC), warned “overtightening poses a more material risk at this [...]
Nottingham Building Society says soaring lending ‘aided by higher interest income’ boosted profits March 3, 2023 The historic Nottingham Building Society reported strong pre-tax profits driven by a surge in mortgage lending last year. Founded in 1849, the building society this morning announced group pre-tax profits of £18.9m, with underlying pre-tax profit of £15.2m. Despite the downturn in the housing market in wake of the disastrous mini budget, it said in [...]
Bank of England Governor Andrew Bailey warns interest rates may have to rise again to tackle inflation March 1, 2023 Governor of the Bank of England Andrew Bailey has today warned interest rates may need to rise even higher to tame inflation, signalling yet more pain is in store for families and businesses. Speaking at a conference on the cost of living crisis in London, Bailey, 63, said if the Bank does “too little with [...]
Savings accounts: Banks under fire as MPs demand to know why interest rate rises have not been passed on to savers March 1, 2023 MPs have asked further questions of banks’ savings rate as pressure increases on the UK’s major high street lenders to pass on higher interest rates to consumers. In a letter to the heads of four of the UK’s largest banks, chair of the Treasury Committee Harriet Baldwin asked banks why their savings rates remain lower [...]
Cost of living crisis has forced families to take on £1.1bn debt and dig into savings, says Bank of England March 1, 2023 Families are saving far less than they did over the course of the Covid-19 pandemic and maxing on credit cards to maintain spending amid the cost of living crisis, official figures have revealed. Brits set aside £3.5bn in January in savings accounts, a slight increase from December, but below the pre-pandemic monthly average increase of [...]
More data points to UK economy avoiding recession but experts urge Hunt to prevent investment cliff edge at March budget March 1, 2023 The prospect of the UK avoiding a recession after a batch of better than expected recent data has propelled business confidence higher, a closely watched survey out today shows. Optimism among company leaders jumped 11 points to minus 17 this month, shifting it back to levels seen when the government launched Plan B measures to [...]