interest rates

The Bank of England warns that nearly one million UK households will face higher mortgage payments due to rising interest rates, potentially impacting financial stability.

Apart from global factors, UK policy decisions have exacerbated inflation – whether post-pandemic public spending or the slow pace of interest rate hikes.

Climate and economic experts are pointing out that the systemic global and local problems behind sticky food inflation need more than just monetary approaches.

The Bank of England is expected today to raise the interest rate for the 13th time in a row, despite recent forecasts of an improving economic outlook.

Despite narrowly escaping a technical recession late last year, the UK economy finds itself on fragile ground as high-interest rates loom.

Treasury Secretary Janet Yellen has warned that the US government would likely run out of cash by June 1

Most European indices closed down as well, including the FTSE 100 in London which dipped into the red after earlier gains.

UK interest rates have been raised for the 12th time in a row in a further attempt by the Bank of England to slow the rising cost of living, increasing the Bank's base rate from 4.25 to 4.5 per cent.

A hike in expected US inflation over the next year comes ahead of next month's federal reserve decision on interest rates. Meanwhile, OPEC cuts increase the price of oil.

A combination of sticky high interest rates and lacklustre global growth could push a number of emerging economies that are facing soaring refinancing needs into debt difficulties next year.

Since the failure of SVB, Bitcoin has been gaining market shares to the detriment of other digital assets. Jerome Powell further confirmed that "the central bank will indeed raise rates in March."

Food inflation has risen by 15 per cent in a year, as prices in Britain's shops reach unprecedented levels. Experts say retailers must focus on their price differentiation strategy as consumers' purse strings "continue to feel the squeeze".

The Bank of England and the US Federal Reserve have claimed the safety and strength of banking systems ahead of key decisions on interest rates.

European Central Bank policymakers are meeting on Thursday amidst turmoil in financial markets that could force it to divert from plans for another hefty interest rate hike even though inflation remains too high.

Bank of England rate-setter Swati Dhingra said on Wednesday that it would be prudent not to raise interest rates further, as previous increases in borrowing costs are yet to feed through into an already weak economy.

S&P 500 sheds 2%, FTSE 100 is expected to open lower, while the UK has seen the British pound fall against the dollar as the government negotiates with the striking public sector.

Asian stocks struggled to come off two-month lows on Wednesday

Australian retail sales rebounded in January after a surprise plunge in December that owed much to changing spending habits, though the underlining pulse was facing headwinds from high inflation and rising interest rates.

British banks face a tougher battle for mortgage customers and business borrowers in 2023, as rising costs and deposit rates paid to long-suffering savers threaten to outpace flatlining profit margins, senior industry executives and analysts said.

Britain's Lloyds Banking Group signalled that falling house prices, competition on savings and rising costs may crimp future returns after reporting flat profit growth for 2022.

The dollar and sterling were buoyant on Wednesday, after a surprise rebound in business activity in the United States and the UK raised the likelihood that their respective central banks would have further to go in raising interest rates.

A leading business finance expert has claimed that the latest increase in interest rates is 'bad news' for many businesses.

The European Central Bank is set to raise interest rates again on Thursday and pencil in more hikes for the next few months, with the only open question being how big these will be.

The Bank of England is poised to raise interest rates for the 10th time in a row on Thursday to keep up its fight against rampant inflation, but it might also drop a hint about when the steep climb in borrowing costs will end.

Slowing the economy typically means that job creation also decelerates, as borrowing becomes more expensive.

The Federal Reserve's effort to shock the economy back to lower inflation is in its early days, making it tough for the U.S. central bank to avoid overdoing it.

The number of Americans filing new claims for jobless benefits dropped to a three-month low last week while layoffs fell 43% in December, pointing to a still-tight labor market that could force the Federal Reserve to keep hiking interest rates.

Global hedge funds are set to register their worst returns in 14 years in 2022 after aggressive U.S. interest rate rises hit asset prices hard.

Asia's stockmarkets made a wobbly start to the final full trading week of 2022, with the prospect of interest rates rising further next year taking the edge off festive cheer.

The Bank of England looks set to raise interest rates to 3.5% or more next week, but policymakers appear increasingly split on how much tightening is needed to tame double-digit inflation as the economy heads into recession.