Mark Carney’s blue-sky take on interest rates misses clouds on the horizon

The Bank of England governor believes the UK economy is well insulated from global shocks, but his forecasts could easily go awry

Forget the financial turmoil in China and around the world. When it comes to the UK, Mark Carney would have us believe he remains in charge.

The Bank of England governor gave a robust defence on Saturday of his position as the UK’s most influential policymaker. That means base interest rates are still going up, perhaps in February or thereabouts, and will be on course to touch 2% by 2018.

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What will China’s Black Monday mean for the UK?

As jittery investors brace for more shockwaves after last week’s rout on world markets, we look at the impact, from property to petrol prices

This was supposed to be the year when normality returned to the global economic landscape. Growth was looking more established and the legacy of the financial crisis was dimming. The US central bank and the Bank of England looked poised to affirm the recovery by finally starting to raise interest rates after keeping them for years at emergency levels. Even the eurozone, having come close to unravelling once again, by this month appeared to have put the latest Greek crisis behind it.

All that changed on China’s “Black Monday” last week, when the stock market sell-off that had been rumbling along for weeks turned into a rout. A near 9% fall in the main Shanghai Composite index, its biggest one-day drop since 2007, reverberated around global markets, sending other bourses from Sydney to Wall Street tumbling. In London, dramatic moves on the FTSE 100 were reminiscent of the worst days of the last crash.

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Young face a bleak future in UK’s flawed jobs market

More than half of Britain’s graduates are in non-graduate jobs. Apprentice pay is pitifully low. The outlook is becoming truly disheartening

As the soggy end of summer makes way for autumn and a new academic year, it is traditionally a time for fresh starts and new hopes. Except with rising student debts and pitiful pay for apprentices, September has become a time for brave leaps in the dark.

When this year’s cohort of young adults embark on their studies, many will carry with them stories of older friends and siblings, long since graduated but still searching for decent work. Anecdotal evidence of graduates working in bars and as receptionists is well-known. Now it has been backed up by a damning report on the state of Britain’s jobs market. Researchers found that due to a mismatch between the number of university leavers and the jobs appropriate to their skills, more than half of the UK’s graduates are in non-graduate jobs. This is one of the highest rates in Europe.

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Central banks can’t save the markets from a crash. They shouldn’t even try

Alarming data from China was met with a soothing hint about monetary policy. But treasuries cannot keep pumping cheap credit into a series of asset bubbles

Like children clinging to their parents, stock market traders turned to their central banks last week as they sought protection from the frightening economic figures coming out of China. Surely, they asked, the central banks would ward off the approaching bogeymen, as they had so many times since the 2008 crash.

The US Federal Reserve came up with the goods. William Dudley, president of the bank’s New York branch, hinted that the interest rate rise many had expected next month was likely to be delayed.

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