Economics
Bank of England Drop Interest Rates And Hint At Further Cuts
The Bank of England has cut interest rates to 0.25 per cent and hinted at further cuts in the next few months. Interest rates haven't been cut since the financial crisis took hold in 2009 and now stand at a record low. The Bank also announced the biggest cut to its growth forecasts since it started making them in 1983 on the back of the economic uncertainty caused by Brexit. It has reduced its growth prediction for 2017 from the...
The cost of UK poverty is £78bn EVERY year
A new study has studied how much poverty impacts on the UK economy and the results are shocking. The Joseph Rowntree Foundation, who conducted the research, have reported that the national cost is £78bn, which costs each taxpayer a huger £1,200 a year. Poverty is categorised as living on an income which is less than 60 per cent of the median. The JRF looked at how these people’s needs create demand on various government services. Without even taking benefits into...
Consumer confidence in UK at 26 year low due to Brexit
More depressing Brexit fall-out news, as household and manufacturing confidence is the lowest it has been since 1990. The study was carried out by GfK, a market research company, and the index indicated the sharpest month on month drop for almost thirty years. Fears about the economic future of the UK post Brexit have dramatically damaged the confidence of UK manufactures and households alike. People are lot gloomier about their own personal finances and are less likely make big ticket...
UK bottom of wage growth league…with Greece
More depressing UK economic news has been released, this time in relation to wage growth. Britain has seen a larger decline in real wages since the 2007 credit crunch than any other developed country apart from Greece. It is feared that Brexit may have an even more negative impact on the wage growth, which could leave a clear gap between the UK and the rest of the OECD group of nations. The figures were discovered by the TUC who revealed...
UK economy at worst level since 2009 due to Brexit
New Data has indicated that the UK economy is really struggling due to Britain’s vote to leave the EU. The pound has fallen after additional claims the economy could contract by 0.4% in the third quarter of 2016. Data from Markit’s Purchasing Manager’s Index (PMI) shows a “dramatic deterioration,” in the economy. These levels have not been seen since the banking crisis, which saw the Government step in to save a number of the United Kingdom’s major banks. The PMI...
UK growth forecasts cut by IMF due to Brexit
The successful Leave campaign during the EU referendum has “thrown a spanner in the works” of the global economies recovery. The IMF (International Monetary Fund) has just cut the UK growth forecast for 2017 citing Brexit as the reason for the slow down in the British economy. During the lead up to the vote, the IMF was vocal in its support for Britain to remain part of the European project. The warnings about an economic downturn fell on deaf ears,...
Is It Time For Britcoin?
The House of Lords will discuss the possibility of having a central bank digital currency called "Britcoin" tomorrow. Its Economic Affairs Committee will take evidence from the Deputy Governor of the Bank of England on blockchain technology, the distributed ledger that allows Bitcoin to function as an online currency. In the session with Dr Ben Broadbent the Committee will explore the prospect of a central bank digital currency and the effect it could have on commercial banks, predictions that blockchain...
UK Economy “Heading For Recession”
The UK economy is heading for recession, according to Bank of America's Ralf Preusser. The GBP/USD exchange rate gapped lower on the open to Monday trade as traders return to their desks, with 30 year lows at 1.3238 to be tested over coming days. Preusser noted: "Prolonged uncertainty could lead investors - including residential investors - to postpone decisions. "We think a recession in the UK will ensue, which cuts our calendar year 2017 GDP growth forecast to 0.2 per cent from 2.3 per...
Labour considering universal basic income, says John McDonnell
By Joe Mellor, John McDonnell, the Shadow Chancellor, has said that the Labour party has been considering a radical approach to ensure everyone in the country receives an income. Universal basic income would see everyone receiving a flat fee rather than the current means-tested benefit system. McDonnell said: ““It is an idea Labour will be closely looking at over the next few years.” This plan “could prepare our country for any revolution in jobs and technology to come.” A report...