Economic News

LONDON (AFX) - European government bonds were up a touch after the European Central Bank reiterated its hawkish stance but indicated that it may nearing the end of this rate hiking cycle. The bank said in its October monthly bulletin that some further tightening of monetary policy will be needed if the euro zone economy continues to grow in line with its expectations. The bulletin editorial close ...

(Updating to add comments from hearing, recasting lead) LONDON (AFX) - Bank of England rate setter Andrew Sentance, who joined the Monetary Policy Committee earlier this month, said the biggest upside risk to UK inflation at present is that above target consumer price inflation will fuel higher wage increases. In his confirmation hearing in front of MPs on the Treasury Select Committee, Sentance ...

Thu 12th Oct 2006 The Royal Institution of Chartered Surveyors (Rics) UK housing market survey has reported a rise in house prices for the 11th consecutive month. This latest increase represents the quickest growth for four years and house prices are growing fastest in London and the south-east. The percentage of chartered surveyors reporting a rise in property prices was just under hal ...

(Updating with more details and comments) LONDON (AFX) - Bank of England rate setter Tim Besley warned today that second round inflationary pressures still exist despite the drop in oil prices. In written answers to the Treasury Select Committee, Besley pointed out that the commitment to keep inflation close to the 2.0 pct CPI target rate has helped limit second round effects in wages and prices ...

LONDON (AFX) - A leading UK business lobby group warned that higher interest rate will damage the economy even though both the services and manufacturing sectors in the country recorded strong improvements in the third quarter of the year. In its quarterly survey, the British Chambers of Commerce said the services sector which makes up about three quarters of overall GDP, reported gains in export ...

LONDON (AFX) - Bank of England rate setter Andrew Sentance believes jobless levels in the UK will moderate over the coming months as the labour market responds to a pick up in overall GDP growth. "We should now expect the demand for labour to pick up in response to the stronger performance of the real economy in the first half of this year -- moderating the rise in unemployment," he sai ...

HONG KONG (XFN-ASIA) - Share prices closed flat in dull trade as investors turned cautious amid uncertainty over US economic prospects and interest rates, dealers said. Minutes of the US Federal Reserve's September meeting, released overnight, indicated that US policy makers remain concerned about inflation despite an economic slowdown. China financial stocks extended their gains following stron ...

LONDON (AFX) - The dollar was marginally lower as some nervousness before this afternoon's US trade data offset any positive impact from mounting expectations that the US Federal Reserve is in no mood to cut borrowing costs any time soon. While the rate-setting FOMC noted at its meeting on Sept 20 that economic activity has decelerated, it highlighted the upside risks to the inflation outlook and ...

Simon Lambert, This is Money12 October 2006 House prices rose at the fastest rate in more than four years in September, with gazumping returning as more buyers chased fewer properties. MINI-BOOM: Property prices in London and the South East are rising rapidly as more buyers chase less homes for sale WANT TO KNOW MORE? REPORT: Homes almost at £200,000 mark TIPS: Five steps to a home in one year DEAL FINDER: Search for a better mortgage in moments OTHER STORIES OF ...

HONG KONG (XFN-ASIA) - Share prices closed flat in dull trade as investors turned cautious amid uncertainty over US economic prospects and interest rates, dealers said. Minutes of the US Federal Reserve's September meeting, released overnight, indicated that US policy makers remain concerned about inflation despite an economic slowdown. China financial stocks extended their gains following stron ...