Category: Bank of England

UK dodges recession with 0.3% growth between July and September 2019 but overall the GDP slumped to worst in 10 years

The UK has avoided falling into recession, with the economy growing 0.3% in the third quarter of the year. The Office for National Statistics said the increase was largely thanks to the services and construction industries. It’s not all positive news, though – the stats show the economy’s growth has slowed to its lowest rate in almost a decade. While car production experienced an uptick in the three months to September, there were widespread falls in other areas of manufacturing, leaving overall output flat.

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Brexit: Bank of England governor shreds Boris Johnson’s claim for avoiding economic damage after no-deal

The Bank of England governor has rubbished a key Boris Johnson claim for avoiding economic damage after a no-deal Brexit, in a severe blow to the Tory leadership favourite.

Mr Johnson dismissed fears about crashing out of the EU by arguing the UK could still enjoy tariff-free trade under what is known as “Gatt 24”, until a permanent agreement was struck. But Mark Carney pointed out the trade law could only be invoked if there was an agreement in place – and the central point of a no-deal Brexit was the absence of a deal.
“The Gatt rules are clear. Gatt 24 applies if you have a [withdrawal] agreement, not if you’ve decided not to have an agreement, or you have been unable to come to an agreement,” he told the BBC.

Philip Hammond’s speech showed why the Tories are struggling to take on Jeremy Corbyn

UK Chancellor of the Exchequer Philip Hammond to decide on future of 1p and 2p coins

Chancellor Philip Hammond will this week rule on the future of 1p and 2p coins, a year after he called them “obsolete”.
In his Spring Statement in 2018, a Treasury consultation about the mix of coins in circulation appeared to pave the way for the end of both of them.
A swift reverse by the Prime Minister’s official spokesman declared there were no plans to scrap the copper coins.