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☆ EU considering whether to attend Britain's AI summit, spokesperson says
▼ + stars: | 2023-09-22 | by ( Martin Coulter | ) www.reuters.com time to read: +2 min

REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing RightsLONDON, Sept 22 (Reuters) - The European Union is considering whether to send officials to Britain's upcoming artificial intelligence safety summit, a spokesperson told Reuters, as the bloc nears completion of wide-ranging AI legislation that is the first of its kind globally. European Commission Vice President Vera Jourova has received a formal invitation to the summit, the spokesperson said, adding: "We are now reflecting on potential EU participation." However, the Financial Times reported that British government officials favour a less "draconian" approach to AI regulation than the EU. Last month, Clifford told Reuters he hoped the summit would set the tone for future international debates on AI regulation. While a number of world leaders, including U.S. Vice President Kamala Harris, are expected to attend the summit, it largely remains unknown who else has been invited -- or who has accepted an invitation.

Persons: Dado Ruvic, Rishi Sunak, Vera Jourova, Sunak, Matt Clifford, Jonathan Black, Clifford, Kamala Harris, Jeremy Hunt, Martin Coulter, Hugh Lawson Organizations: REUTERS, European, British, Financial Times, EU, Tech, Reuters, U.S, Politico, Thomson Locations: European Union, Britain, China

☆ UK's Jeremy Hunt plans ISA overhaul to boost share ownership, Financial Times reports
▼ + stars: | 2023-09-22 | by ( ) www.reuters.com time to read: +1 min

British Chancellor of the Exchequer Jeremy Hunt holds a Ministerial Statement at the House of Commons in London, Britain, June 26, 2023. ISAs enable people to hold savings and investments without paying tax on interest or capital gains. According to the FT report one radical option being considered is an additional ISA allowance for investing in UK companies. Other options being discussed include enabling cash savings and stock market investments to be held within a single ISA, rather than separately as they are now, enabling people to save and invest tax-efficiently, the report said. The UK's Treasury did not immediately respond to a Reuters' request for comment on the report.

Persons: Jeremy Hunt, Jessica Taylor, Handout, Akanksha, Leslie Adler Organizations: Financial Times, Treasury, ISA, Thomson Locations: London, Britain, REUTER, Bengaluru

LONDON (AP) — Before he hit America, Rupert Murdoch ripped through Britain’s media like a tornado. But politicians from both right and left courted and feared Murdoch, who added The Times and Sunday Times to his stable in 1981. Like other politicians, Blair denied giving Murdoch anything in return for his support — though plenty of skeptics doubted that. For now, Rupert Murdoch remains a magnet for the powerful, and those who seek power, in Britain. The guest list for his summer party in June included Prime Minister Rishi Sunak, many members of his Cabinet and opposition Labour Party leader Keir Starmer.

Persons: Rupert Murdoch, Lachlan, Murdoch, Boris Johnson, “, Nathan Sparkes, Murdoch “, Jeremy Corbyn, Jeremy Hunt, Britain’s, couldn’t, ”, Jacques Delors, Margaret Thatcher, Thatcher’s, John Major, Sun wot, Tony Blair’s, Blair, ” Blair, Andy Coulson, Prince Harry, Lachlan Murdoch, Rishi Sunak, Keir Starmer, James, Kathryn Murdoch Organizations: Fox, News Corp, Times, ”, Labour Party, Treasury, LBC, BBC, European, Argentine, Liverpool, Sunday Times, Thatcher’s Conservative, Sun, Blair’s Labour Party, Murdoch’s News Corp, The Sun, Sky Television, Premier League soccer, Sports, BSkyB, Comcast, AP Locations: London, Australian, Britain, British, Hillsborough, ___

☆ U.K. Inflation Rate Slips Lower for Third Straight Month
▼ + stars: | 2023-09-20 | by ( Eshe Nelson | More About Eshe Nelson | ) www.nytimes.com time to read: +3 min

Deeper Into the Numbers: Core inflation slowed faster than expected. A key gauge of domestic price pressures is core inflation, which strips out energy and food costs. Last month, the annual rate of core inflation fell to 6.2 percent, from 6.9 percent in July, a faster decline than economists predicted. Rising energy prices pushed up inflation in the United States last month and added to inflation pressures in other European countries. Wednesday’s inflation data was lower than the central bank forecast last month, a positive surprise, that is likely to increase expectations that the bank will pause this week.

Persons: Rishi Sunak, Jeremy Hunt Organizations: Government, Bank of England Locations: Britain, United States

The Viking Star cruise ship is moored at Greenwich with the City of London financial district in the distance, in London, Britain, August 29, 2023. It is absolutely the time for action over words," Alasdair Haynes, CEO of Aquis Exchange, a share trading platform, and chair of financial industry body TheCityUK's Business Council, told Reuters. The main problem for trade bodies is the vast scope of Britain's financial services industry, with each sub-sector and TheCityUK presenting their own reform priorities and ideas, often overlapping. In the meantime, top financial sector executives running global teams of bankers and traders are increasingly bewildered by Britain's inability to make faster progress on a matter of such economic significance. ELECTION LOOMINGSome senior financial industry sources say politics may hamper the City's reform agenda even further, with a general election expected next year.

Persons: Kevin Coombs, Alasdair Haynes, Jeremy Hunt, Nicholas Lyons, TheCityUK, ” Samuel Gregg, Richard Gardner, Huw Jones, Sinead Cruise, Hugh Lawson Organizations: Viking, City, REUTERS, London’s, Mayor, European Union, Aquis, Business, Reuters, Finance, stoke, of, Arm Holdings, Labour, Conservative, American Institute for Economic Research, Investment Funds Association, EU, Thomson Locations: Greenwich, London, Britain, Europe, Asia, United States, Edinburgh, of London, New York, Amsterdam, City, France

Investors put a nearly 50-50 chance on the BoE keeping rates on hold on Thursday after 14 back-to-back increases stretching back to December 2021. Investors had been overwhelmingly expecting the BoE to raise interest rates for the 15th time in a row on Thursday, taking Bank Rate to 5.5% from 5.25%. "The inflation figures may not sway the Bank of England away from raising interest rates tomorrow," Yael Selfin, chief economist at KPMG UK, said. Britain's inflation rate remains high - topped only by Austria and Iceland among Western European countries in August. But core inflation - which strips out volatile food and energy prices - fell by more than the headline rate to 6.2% from 6.9% in July.

Persons: Hunt, BoE, Yael Selfin, Price, Rishi Sunak, Jeremy Hunt, William James, Hugh Lawson Organizations: Reuters, Bank of England, Sterling, U.S, Investors, National Statistics, KPMG, Labour Party, Thomson Locations: July's, British, Austria, Iceland, Western, Britain

☆ UK inflation to be highest among big economies in 2023 - OECD
▼ + stars: | 2023-09-19 | by ( ) www.reuters.com time to read: +2 min

LONDON, Sept 19 (Reuters) - Britain remains on course to have the highest inflation of leading rich economies in 2023, according to Organisation for Economic Co-operation and Development forecasts which showed the country's inflation problem widening compared with most of its peers. Britain's headline inflation rate was set to average 7.2% over 2023, up from a previous forecast of 6.9% made by the OECD in June. It was also higher than Germany's expected inflation this year of 6.1% and France's 5.8%, both of which represented cuts from the OECD's June forecasts. "Today the OECD have set out a challenging global picture, but it is good news that they expect UK inflation to drop below 3% next year," finance minister Jeremy Hunt said in a statement. Britain's high inflation rate has led the Bank of England to raise borrowing costs 14 times in a row since December 2021.

Persons: Rishi Sunak, Jeremy Hunt, William Schomberg, Andy Bruce Organizations: for Economic Co, OECD, Bank of England, Thomson Locations: Britain, Japan, Paris, France, Germany, Italy

“This proposal is a landmark moment for maintaining ongoing U.K. steel production, supporting sustainable economic growth, cutting emissions and creating green jobs,” said Treasury chief Jeremy Hunt. “With the support of the U.K. government and dedicated efforts of the employees of Tata Steel U.K. along with all stakeholders, we will work to transform Tata Steel UK into a green, modern, future-ready business," said Tata Steel’s chief executive and managing director, TV Narendran. Unions were furious about the potential job losses at Port Talbot, which at its height in the 1960s employed around 20,000 people, before cheaper offerings from around the world hit production. "The cost to local people and the wider Port Talbot community will be immense," said Gary Smith, general secretary of the GMB trade union. He noted that Germany has invested over $53 billion in decarbonising heavy industry and has committed to work with unions and protect jobs.

Persons: ”, Jeremy Hunt, Tata, Gary Smith, “, Luke Murphy Organizations: Tata, Britain’s Department for Business, Trade, “, Tata Steel, Tata Steel UK, Unions, Port Talbot, Institute for Public Policy Research Locations: Port Talbot, Wales, steelmaking, Britain, Germany

☆ Higher pay makes life harder for Treasury and BoE
▼ + stars: | 2023-09-12 | by ( ) www.reuters.com time to read: +2 min

Andrew Bailey, Governor of the Bank of England, attends the Bank of England Monetary Policy Report Press Conference, at the Bank of England, London, Britain, February 2, 2023. Yui Mok/Pool via REUTERS Acquire Licensing RightsLONDON, Sept 12 (Reuters Breakingviews) - UK employees and pensioners can raise a glass. Average total pay, including bonuses, rose at an annual rate of 8.5% in the three months to July, faster than inflation. The average state pension will rise from 156.2 pounds to 169.5 pounds per week, according to the Institute for Fiscal Studies. Bank of England Governor Andrew Bailey and finance minister Jeremy Hunt may, however, be crying into their beer.

Persons: Andrew Bailey, Yui Mok, Jeremy Hunt, Hunt, BoE, Bailey, Francesco Guerrera, George Hay, Oliver Taslic Organizations: Bank of England, Press, REUTERS Acquire, Reuters, Institute for Fiscal Studies, X, UBS, Warner Bros Discovery, Thomson Locations: London, Britain, Asia

Workers walk through the Canary Wharf financial district, ahead of a Bank of England decision on interest rate changes, in London, Britain, August 3, 2023. The unemployment rate rose, the number of people in work fell sharply and vacancies dipped below 1 million for the first time in two years, the Office for National Statistics (ONS) said on Tuesday. Yet if incoming data doesn't turn definitively, another hike to a terminal rate of 5.75% is absolutely on the table." The unemployment rate rose to 4.3% in the three months to July from 4.2% a month earlier, its highest since the three months to the end of September 2021, the ONS said. Including bonuses, pay rose by 8.5% compared with the 8.2% consensus, boosted in part by backdated pay for healthcare workers.

Persons: Toby Melville, BoE, Hugh Gimber, they've, Andrew Bailey, Jeremy Hunt, Andy Bruce, David Milliken, Sachin Ravikumar, David Holmes Organizations: Bank of, REUTERS, Bank of England, National Statistics, Morgan Asset Management, Thomson Locations: Bank of England, London, Britain

☆ Dollar eases as risk appetite improves on China's measures
▼ + stars: | 2023-09-04 | by ( Joice Alves | ) www.reuters.com time to read: +4 min

[1/2] U.S. Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. The China-sensitive euro was up 0.25% at $1.0799, just off a 10-week low touched last week against the dollar. The Australian dollar and the New Zealand dollar also got a lift from those measures. "The U.S. dollar is softening against most other G10 currencies today as risk appetite improves on the back of China support measures," said Jane Foley, head of FX strategy at Rabobank. The Canadian dollar slipped 0.07% to 1.359 per dollar ahead of the Bank of Canada's policy meeting this week, with the central bank expected to hold rates.

Persons: Dado Ruvic, Jane Foley, Christine Lagarde, Isabel Schnabel, Foley, Jeremy Hunt, Sterling, Joice Alves, Ankur Banerjee, Sharon Singleton, Christina Fincher Organizations: REUTERS, U.S, Australian, New Zealand, Rabobank, European Central Bank, ECB, FOCUS, Reserve Bank of Australia, Canadian, Bank of, Thomson Locations: China, Beijing, FOCUS British, U.S, London, Singapore

☆ The UK economy is bigger than we thought. It still has ‘a growth problem’
▼ + stars: | 2023-09-04 | by ( Hanna Ziady | ) edition.cnn.com time to read: +5 min

London CNN —The UK economy recovered from the Covid-19 pandemic much faster than previously thought, according to major revisions of official statistics that have erased Britain’s laggard status overnight. The ONS had said as recently as last month that UK GDP had still not reached its pre-pandemic size by the second quarter of this year. “UK growth has still been very sluggish, even if it’s not at the bottom,” said Prof. Huw Dixon, who leads research in economic measurement at the National Institute of Economic and Social Research. So while the size of the economy is bigger than we thought, Britain still has a growth problem.”Richer dataIn 2020, the UK economy suffered its biggest slump in more than three centuries, recovering sharply the following year off a low base. Annual GDP growth for 2021 was also revised up by 1.1 percentage points to 8.7%.

Persons: ” Ruth Gregory, “, ”, Huw Dixon, ” Dixon, ” John Springford, Richer, That’s, Frost, Darren Morgan, Henry Nicholls, Jeremy Hunt, Gregory, Nomura Organizations: London CNN, Office, National Statistics, ONS, Capital Economics, National Institute of Economic, Social Research, CNN, Centre, European Reform, Getty Images, Bank of England Locations: Germany, United States, Canada, Japan, Italy, France, Britain, Petticoat Lane, AFP, United Kingdom

☆ UK finance minister Hunt says inflation is on track to come down
▼ + stars: | 2023-09-02 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Yves Herman/File Photo Acquire Licensing RightsLONDON, Sept 2 (Reuters) - British finance minister Jeremy Hunt said on Saturday inflation was on track to halve by the end of 2023, vowing to focus on the goal as he laid out his priorities ahead of the reopening of parliament after the summer break. Britain's inflation rate is forecast to fall to about 5% by the end of the year - half January's level - and meeting the target would mean one of the five key pledges Prime Minister Rishi Sunak made to voters for 2023 would be met. Hunt said in a statement issued on Saturday that pressure on household budgets would start to ease as inflation cools. "We are on track to halve inflation this year and by sticking to our plan we will ease the pressure on families and businesses alike," Hunt said, ahead of lawmakers returning to parliament on Monday. For July, Britain's annual consumer price inflation rate cooled to 6.8% - still the highest rate among the Group of Seven economies.

Persons: Jeremy Hunt, Mairead McGuinness, Yves Herman, Rishi Sunak, Hunt, Sunak, Sarah Young, Helen Popper Our Organizations: Financial Stability, Financial Services, Capital Markets, REUTERS, Labour Party, Conservative Party, Thomson Locations: Brussels, Belgium, British

☆ UK’s improving finances will bear no fiscal gifts
▼ + stars: | 2023-08-22 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Yves Herman/File Photo Acquire Licensing RightsLONDON, Aug 22 (Reuters Breakingviews) - Higher tax receipts helped Britain to borrow less than expected in July. The UK’s poor economic health leaves him with little room for fiscal giveaways ahead of a prospective 2024 election. Public sector net borrowing stood at 4.3 billion pounds in July, less than the 5 billion pounds expected by economists polled by Reuters. In the first four months of the fiscal year, borrowing was 11.3 billion pounds below the Office for Budget Responsibility’s forecast. The recent rise in bond yields will add around 18 billion pounds to debt interest spending by 2027/28, says Capital Economics.

Persons: Jeremy Hunt, Mairead McGuinness, Yves Herman, Hunt, Francesco Guerrera, EY’s loveless, Lisa Jucca, Katrina Hamlin Organizations: Financial Stability, Financial Services, Capital Markets, REUTERS, Reuters, Budget, Economics, Twitter, TPG, Thomson Locations: Brussels, Belgium

☆ Why inflation makes Britain’s debt the costliest among rich economies
▼ + stars: | 2023-08-22 | by ( Hanna Ziady | ) edition.cnn.com time to read: +4 min

Interest payable on UK central government debt hoovered up £7.7 billion ($9.8 billion) last month alone, hitting a record for July, the Office for National Statistics said Tuesday. That’s double the share in Italy, whose dependence on inflation-linked debt comes second only to that of the UK among advanced economies, according to Fitch Ratings. According to Fitch, Britain now spends more to service its debt than any other developed economy, as a percentage of government revenue. In a statement Tuesday, Hunt said: “As inflation slows, it’s vital that we don’t alter our course and continue to act responsibly with the public finances. Only by sticking to our plan will we halve inflation, grow the economy and reduce debt.”

Persons: That’s, ”, Ellie Henderson, Fitch, ” Ruth Gregory, Jeremy Hunt “, Gregory, Hunt Organizations: London CNN, National Statistics, United, Fitch, “, Investec, AAA, Capital Economics, CNN, Conservative Locations: Ukraine, United States, Italy, Fitch, Britain, London

Net borrowing, excluding state-owned banks, stood at 4.3 billion pounds ($5.49 billion) last month, less than the median forecast of 5.0 billion pounds in a Reuters poll of economists. In the first four months of the financial year, borrowing stood at 56.6 billion pounds. "As inflation slows, it's vital that we don’t alter our course and continue to act responsibly with the public finances," Hunt said in a statement after the data. Interest costs rose by 1.5 billion pounds compared with July last year to 7.7 billion pounds, the highest for July since records began in April 1997. The public finances were boosted by inflows of self-assessed income tax receipts which are typically strong in July, which stood at 11.8 billion pounds, 2.5 billion pounds more than in July last year.

Persons: Jeremy Hunt, Jessica Taylor, Handout, Hunt, Rishi Sunak, Liz Truss's, Ruth Gregory, Gregory, Gabriella Dickens, William Schomberg, Sachin Ravikumar, Andrew Heavens, Tomasz Janowski Organizations: REUTERS Acquire, Reuters, Bank of England, Conservative Party, Treasury, Capital Economics, Senior, National Statistics, Britain's, Thomson Locations: London, Britain

☆ UK PM Sunak commits to triple-lock pension policy despite inflation
▼ + stars: | 2023-08-16 | by ( ) www.reuters.com time to read: +1 min

LONDON, Aug 16 (Reuters) - British Prime Minister Rishi Sunak said he was committed to the government's mechanism for increasing state pensions even though it is likely to cost billions of pounds more than usual given high inflation. The pension triple lock is a government promise to raise publicly funded pensions by the level of earnings, inflation or 2.5%, whichever is highest. "Of course the government is committed to its policy on the triple lock," Sunak told ITV News on Wednesday when asked whether he would stick to the pledge despite the rate of inflation. "When I set out that target people said 'oh that's very easy he’s not ambitious enough'," he told ITV. "I thought it was an ambitious target, but it's right to be ambitious for our country."

Persons: Rishi Sunak, Sunak, Jeremy Hunt, William Schomberg, Kylie MacLellan Organizations: British, ITV News, Bank of, ITV, Thomson Locations: that's

☆ UK headline inflation rate drops sharply to 6.8% in July, in line with expectations
▼ + stars: | 2023-08-16 | by ( Elliot Smith | ) www.cnbc.com time to read: +5 min

In August, the Bank of England increased interest rates for the 14th time in a row. LONDON — U.K. headline inflation cooled sharply in July to an annual 6.8%, but the core consumer price index remained unchanged, posing a potential headache for the Bank of England. Analysts noted that the participation rate broadly held steady, while the employment rate declined, signaling a weakening in labor demand. U.K. Finance Minister Jeremy Hunt said the drop in headline inflation showed the government's action to tackle inflation is "working," but "we're not at the finish line." Cost-of-living crisis 'far from over'With headline inflation falling to 6.8% and wages growing at record pace, the U.K.'s prolonged cost-of-living crisis may be showing signs of abating, said David Henry, investment manager at Quilter Cheviot.

Persons: Jeremy Hunt, Hunt, David Henry, Henry, Suren, Thiru Organizations: Bank of England, LONDON, Reuters, National Statistics, Monetary, Analysts, Office, Finance, Institute of Chartered Accountants Locations: CPIH, Cheviot, England, Wales

The ONS said falling gas and electricity prices were the biggest driver behind the drop in inflation, while food price inflation also eased. Despite the drop in the headline figure, Britain retains one of the highest rates of price growth in Western Europe, with only Iceland and Austria suffering higher inflation. The BoE is watching core inflation - which strips out volatile food and energy prices - and consumer services prices closely. Services inflation picked up to 7.4% from 7.2% in June. Financial markets on Wednesday showed a roughly two-thirds chance that the BoE's Bank Rate will hit 6% in February, up from 5.25% now.

Persons: Phil Noble, BoE, Sterling, Ruth Gregory, Jeremy Hunt, Andy Bruce, William Schomberg Organizations: REUTERS, Bank of, National Statistics, U.S, ONS, Bank, Capital Economics, Financial, Manufacturers, Thomson Locations: Altrincham, Britain, Bank of England, Western Europe, Iceland, Austria, BoE's

Official data on Friday showed the economy grew 0.2% in the second quarter, against the consensus for a flat reading in a Reuters poll of economists. The strong showing bolstered bets that the BoE would keep on raising interest rates, given the central bank stressed this month that resilience in the economy was one of the factors that would underpin its judgement. The central bank itself had pencilled in growth of 0.1% for the second quarter. "With much of the drag from higher interest rates still to come, we are sticking to our below-consensus forecast that the UK is heading for a mild recession later this year," said economist Ruth Gregory from consultancy Capital Economics. Reporting by Andy Bruce and David Milliken; editing by William James, Kate Holton and Christina FincherOur Standards: The Thomson Reuters Trust Principles.

Persons: Sterling, BoE, Neil Birrell, Jeremy Hunt, Ruth Gregory, Andy Bruce, David Milliken, William James, Kate Holton, Christina Fincher Organizations: Bank of England, U.S ., Reuters, Bank of, Miton, National Statistics, Manufacturing, Reuters Graphics, Capital Economics, Thomson Locations: Bank of England, Britain, Germany, France, Italy, United States

LONDON — The U.K. economy beat expectations with 0.2% growth in the second quarter, boosted by household consumption and manufacturing output, the Office for National Statistics said Friday. The economy expanded by 0.5% in June, beating a forecast of 0.2% growth. It follows monthly GDP growth of 0.1% in May and 0.2% in April. Output was bolstered by 1.6% growth in manufacturing and 0.7% in production in the second quarter, while services grew by 0.1%. In its most recent monetary policy report, it said it expects quarterly GDP growth to remain around 0.2% in the near term.

Persons: eking, King Charles III, Mike Coop, CNBC's, Coop, Jeremy Hunt, BoE, Ruth Gregory Organizations: National Statistics, Reuters, Bank of, ONS, Morningstar, Bank of England, of England, IMF, Finance, Capital Economics Locations: Germany, France, Italy

☆ UK GDP jump offers little relief to BoE
▼ + stars: | 2023-08-11 | by ( ) www.reuters.com time to read: +2 min

The larger-than-forecast 0.5% rise in GDP in June meant that output grew 0.2% in the second quarter compared to the previous three months. That’s a modest acceleration but not enough to force the Bank of England to hike rates again in September. Jeremy Hunt, Britain’s finance minister, was quick to claim credit for the GDP numbers. Less rational is the sharp jump in sterling and UK bond yields, fuelled by market expectations that the BoE will now have to raise rates in September. Sure, June GDP numbers were strong but they were flattered by the absence of the bank holiday that had depressed May’s figures.

Persons: That’s, Jeremy Hunt, BoE, Francesco Guerrera, Aimee Donnellan, Streisand Neto Organizations: Reuters, England soccer, Bank of, Conservative, Twitter, Siemens, Thomson Locations: Bank of England, Britain

☆ Italy windfall tax: European bank stocks bounce after tax blow is watered down
▼ + stars: | 2023-08-09 | by ( Anna Cooban | ) edition.cnn.com time to read: +2 min

London CNN —Banking stocks in Italy and elsewhere in Europe rebounded Wednesday after the country watered down a plan to whack its banks with a surprise one-off 40% tax on their windfall profits. The government’s climbdown eased investors’ fears over European banks more broadly. The Stoxx Europe 600 Banks index, which tracks 42 big banks in the European Union and the United Kingdom, gained 1.7% after shedding 3.5% the previous day. Late Monday, the government said it would impose a one-off windfall tax of 40% and would use the proceeds to support first-time home buyers and cut taxes for families and businesses. Several European countries, including Spain and the Czech Republic, have announced taxes on banks’ windfall profits in the past year as interest rate hikes by central banks have beefed up many lenders’ earnings.

Persons: ’, Giancarlo Giorgetti, Remo Casilli, Jeremy Hunt, Moody’s Organizations: London CNN — Banking, Banco, European Union, Reuters, Deutsche Bank, DB, Bank Locations: Italy, Europe, United Kingdom, Rome, Spain, Czech Republic

Sterling initially dropped, reflecting disappointment after traders had priced in a 30% chance of another 50 bp hike. Longer-term gilt yields, more responsive to investors' perceptions about the economic growth trajectory, rose by the most in a month. Governor of the Bank of England Andrew Bailey attends a press conference for the Monetary Policy Report August 2023, at the Bank of England in London, Britain, August 3, 2023. Two-year gilt yields have risen by more than 120 basis points this year, more than double the increase of their U.S. equivalent. On Thursday, two-year gilt yields were down 5 bps in late trade, while those on 30-year debt rose 10 bps, the most in a month, to 4.66%.

Persons: BoE, Andy Burgess, Andrew Bailey, Sterling, we've, Bank of England Andrew Bailey, Alastair Grant, Jeremy Hunt, Carl Shepherd, they'll, juicier, Peter Goves, Kirsten Donovan Organizations: Bank, Bank of England, Monetary, REUTERS, Conservative, Newton Investment Management, Swiss, MFS Investment Management, Reuters Graphics, Thomson Locations: AMSTERDAM, LGIM, London, Britain, U.S

☆ Bank of England hikes rates by quarter percentage point in split vote
▼ + stars: | 2023-08-03 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

People walk outside the Bank of England in the City of London financial district, in London, Britain, January 26, 2023. The Monetary Policy Committee (MPC) voted 6-3 in favor of the quarter-point hike, with two members preferring a second straight 50 basis point increase and one voting to keep rates unchanged. Market pricing was split roughly 60/40 in favor of a quarter-point hike as of Thursday morning, according to Refinitiv data. Inflation is expected to dip below 2% during the second quarter of 2025, the Bank said in its accompanying Monetary Policy Report, finishing 2024 at 2.5% and 2025 at 1.6%. Prices have since shown signs of cooling, but the MPC is navigating a more complicated picture in the labor market.

Persons: imminently, Rishi Sunak, Jeremy Hunt, Hunt Organizations: Bank of England, LONDON, Monetary Policy, MPC, Bank, Committee Locations: City, London, Britain

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