Economic News

LONDON (AFX) - Ed Balls, the economic secretary to the Treasury, warned today about the downside risks to the economy from the recent turbulence in financial markets. "Look at the impact of high oil and food prices on inflation in recent months and the continued need for discipline in wage bargaining," he said in a speech to the London Business School. "And the market turbulence o ...

(Adds more comments from Trichet's introductory statement) FRANKFURT (AFX) - European Central Bank president Jean-Claude Trichet said the ECB's interest rates are now "moderate" after today's rate hike and the central bank will continue to watch inflation risks very closely. "Our monetary policy continues to be on the accommodative side, with the key ECB interest rates moderate, m ...

LONDON (AFX) - The euro remained steady after the European Central Bank increased its key interest rate to 3.75 pct, as widely expected. Investors will now look to the press conference and statement at 1330 GMT for signals as to the direction of future policy. After recent jitters in equity and commodity markets and mixed economic data, investors have scaled back their interest rate expectations. ...

WASHINGTON (AP) - The number of laid-off workers filing claims for unemployment benefits declined last week, providing a slight break from a recent rise in layoffs. The Labor Department reported that applications for jobless benefits totaled 328,000 last week, the lowest level in a month and down a better-than-expected 10,000 from the previous week. However, the four-week average for claims rose ...

LONDON (AFX) - The Bank of England's decision to keep interest rates unchanged "makes sense", the Confederation of British Industry said. "Inflationary pressures are still finely balanced. Indications of restraint in the private sector pay round, combined with the government's welcome curb on public sector pay will be helping allay inflation concerns," said CBI chief economic  ...

LONDON (AFX) - Homeowners won a reprieve today from the Bank of England but it may only last a month, analysts said after the central bank kept borrowing costs unchanged for the second month running. They said that mortgage rates are more than likely to rise again either in April and May if the BoE's rate-setting Monetary Policy Committee raises rates as expected to a six-year high of 5.50 pct.  ...

LONDON (AFX) - A leading business lobby group said the Bank of England was correct in its decision to keep its key repo rate unchanged at 5.25 pct even though inflation continues to be a real threat to the UK economy's prospects. David Kern, economic adviser to the British Chambers of Commerce, said inflation remains a "potential UK danger" even though the risks have eased over the past ...

NEW YORK (AP) - A U.S. Federal Reserve report detailing tepid economic activity helped Treasury prices rise Wednesday, capping a session where prices had held steady for most of the day. At 5 p.m. EST, the 10-year Treasury note was up $3.44 per $1,000 in face value, or 11/32 point, from its level at 5 p.m. Tuesday. Its yield, which moves in the opposite direction, fell to 4.49 percent from 4.53 p ...

LONDON (AFX) - The euro was steady ahead of this afternoon's expected interest rate increase from the European Central Bank (ECB). More interest will be on what ECB president Jean-Claude Trichet says about the future course of monetary policy after the likely quarter point hike in the refi rate to 3.75 pct. Commerzbank Corporates & Markets currency strategist Gavin Friend said the the euro m ...

GENEVA (AP) - Analysts are unanimous in their prediction that the European Central Bank will increase its key interest rate Thursday, but investors are more interested to hear what bank president Jean-Claude Trichet says afterward. Their interest has been piqued by the volatility that roiled markets following former Federal Reserve Chairman Alan Greenspan's comment last week that the United S ...