All posts by Moderator

Rate rise warning is sign tackling inflation is Bank of England’s priority | Larry Elliott

Grounds are being laid to end the flow of easy money sooner than expected

An interest rate rise is coming and it is coming fast. That was the clear message from the Bank of England in a marked shift in its policy stance from supporting growth to tackling inflation.

Back in November when Threadneedle Street raised borrowing costs for the first time in a decade it sugared the pill with some doveish language that suggested there would only be two further increases over the next three years.

Inflation is when prices rise. Deflation is the opposite – price decreases over time – but inflation is far more common.

Continue reading…

10 Thursday AM Reads

My Olympic morning train reads: • $XIV Volpocalypse – A Sea of Disinformation and Misunderstanding (Kid Dynamite) • An Ode to the Video Store Chain, on the Occasion of Blockbuster’s Demise (Texas Monthly) • The Obscure History—and Future—of the Plastic Bag (Bloomberg) • The Best Books on Neuroscience: a reading list for students considering it as a career (Five Books)…

Read More

The post 10 Thursday AM Reads appeared first on The Big Picture.

UK interest rate rise is coming, Bank of England tells borrowers

Decision to hold rates now came with heavy caveats that a rise is likely in May to tackle inflation

The Bank of England has signalled that an interest rate hike is coming from as early as May and that there are more to come, as the economy accelerates with help from booming global growth.

Inflation is when prices rise. Deflation is the opposite – price decreases over time – but inflation is far more common.

Related: Watch out: interest rates will rise at the end of February

Why are stock markets falling?

Continue reading…