Decision by 8-1 will reassure businesses and households as MPC gives no indication of imminent rise, while Bank cuts inflation forecast
The Bank of England is ready to step up controls on the housing market if a prolonged period of record low interest rates risks inflating a property bubble, governor Mark Carney has said. As he signalled that interest rates were likely to remain on hold well into next year, Carney suggested the Bank may have to revert to other measures, such as tighter lending rules, to keep a lid on house prices.
Speaking after news from lender Halifax that house prices had jumped almost 10% from a year ago, he raised concerns that households were saving less and that some would end up overstretching themselves. More action could be warranted from the Bank, which has the power to clamp down further on mortgage lending as part of its macro-prudential tools.
“The UK car market has gone through a period of unprecedented growth and, so far, 2015 has been a bumper year with the strongest performance since the recession.
As expected, demand has now begun to level off but the sector is in a strong position, as low interest rates, consumer confidence and exciting new products combine to attract new car buyers. The current full-year growth forecast remains on track.”
Global economy will be transformed over next 20 years at risk of growing inequality, say analysts
A “robot revolution” will transform the global economy over the next 20 years, cutting the costs of doing business but exacerbating social inequality, as machines take over everything from caring for the elderly to flipping burgers, according to a new study.
As well as robots performing manual jobs, such as hoovering the living room or assembling machine parts, the development of artificial intelligence means computers are increasingly able to “think”, performing analytical tasks once seen as requiring human judgment.
Institute for Economic Affairs report says stripping Whitehall of most of its powers would create 6% rise in living standards
Stripping Whitehall of the bulk of its powers through a process of sweeping devolution would raise living standards in the UK by 6%, a leading free-market thinktank has said.
The Institute for Economic Affairs said Britain would be richer with a fully federal system in which central government would have control over defence, foreign affairs and border control and all other responsibilities would be passed down to local authorities.
Zoe Williams puts forward an extraordinary argument (There’s plenty more space for humanity on this ‘tiny’ island, 2 November). She suggests that because “only” 10.6% of England’s land area is urbanised there is room for a great many more people than currently live here. This ignores lots of things, but let’s focus on one: food.
Despite an intensive agriculture that depends heavily on pesticides, fertilisers and diesel fuel for tractors, neither England nor the UK is self-sufficient in food. In fact we import 40% of our food, and the proportion is rising. That might not matter if we could be sure that we’ll be able to import food in increasing quantities.
Federal Reserve chair tells House committee that no decision has been made but a rise in rates is still a ‘live possibility’ despite continued low inflation
A December interest rate increase is still on the table, US Federal Reserve chair Janet Yellen said Wednesday during testimony before the House financial services committee.
Asked by New York congresswoman Carolyn Maloney, a Democrat, whether the risk of raising rates in December outweigh the benefits, Yellen said that the committee has made no decision yet but that December rate hike was still a “live possibility”.