Kwarteng warns Bank of England over blaming Ukraine war for inflation

Kwasi Kwarteng has issued a warning to the Governor of the Bank of England, as he vows in Friday’s mini-Budget to break the “cycle of stagnation”. The Chancellor told Andrew Bailey that claims that near double-digit inflation was mainly driven by the war in Ukraine were less credible now that the Government had taken action … Read more

Do Wages Drive Prices, or Vice Versa? The Answer Matters for Interest Rates

FRANKFURT—Even as some prices such as for gasoline signal tentative easing of inflation pressure, the Federal Reserve and other central banks remain preoccupied with one that shows the opposite trend: the price of labor. Soaring pay growth, officials worry, could prompt businesses to keep raising prices to offset higher labor costs, producing a wage-price spiral. … Read more

Markets bet interest rates will double by the end of 2022

Markets are betting on the Bank of England doubling interest rates by the end of 2022 as investors brace for the biggest increase in 27 years at this week’s meeting. Officials on Threadneedle Street are expected to vote for a rare 0.5 percentage point increase to interest rates on Thursday as the Bank comes under … Read more

Bigger interest rate hike expected from Bank of England decision makers

T he Bank of England could speed up its reaction to runaway inflation figures next week as key decision makers sit down to set interest rates. Analysts and the market are broadly expecting the Bank’s Monetary Policy Committee (MPC) to add 50 basis points to its base rate. It would bring the rate to 1.75% … Read more

The Fed Needs to Rewrite Its Playbook

The Fed Needs to Rewrite Its Playbook

PM and Chancellor unified in announcing ‘single biggest tax cut in a decade’

B oris Johnson and Rishi Sunak have penned a joint article to outline what they are calling “the single biggest tax cut in a decade” in a show of unity on the cost-of-living crisis. Writing in the Sun on Sunday, the Prime Minister and Chancellor said when the National Insurance threshold rises overnight this coming … Read more

Powell Says Fed Must Accept Higher Recession Risk to Combat Inflation

Federal Reserve Chairman Jerome Powell said he was more concerned about the risk of failing to stamp out high inflation than about the possibility of raising interest rates too high and pushing the economy into a recession. “Is there a risk we would go too far? Certainly there’s a risk, ”Mr. Powell said Wednesday. “The … Read more

Bank of England hikes rates for the fifth time in a row as inflation soars

LONDON – The Bank of England on Thursday implemented a fifth consecutive hike to interest rates as it looks to rein in soaring inflation. The Monetary Policy Committee voted 6-3 to increase the Bank Rate by 25 basis points to 1.25%, with the three dissenting members voting for a 50 basis point hike to 1.5%. … Read more

Bank of England chief warns over ‘apocalyptic’ food price rises – Evening Standard

Bank of England chief warns over ‘apocalyptic’ food price risesEvening Standard UK Inflation at a 40-Year High Engulfs Johnson and BOE in CrisisFinancial Post Cost of living: Minister ‘somewhat surprised’ at Bank of England’s ‘apocalyptic’ food price warningSky News Letters: The Bank of England is in denial about its role in the inflation crisisThe Telegraph … Read more