Business

Interest rates will have to be raised higher than initially hoped in the face of inflationary pressures, the Bank of England (BoE) governor has suggested. Speaking at an International Monetary Fund event in Washington, Andrew Bailey also said there had been “a very clear and immediate meeting of minds” with new Chancellor Jeremy Hunt on

So farewell, then, Trussonomics. The demise of the country’s second shortest-lived chancellor also brings with it the demise of the country’s shortest-lived economic movement. Liz Truss came into office promising to boost the country’s growth rate through a forensic combination of tax cuts, reforms to the country’s supply side (for which read: things like planning

The financial markets have responded negatively following Liz Truss’s announcement of a U-turn on corporation tax in a bid to reassure investors. As was widely predicted, the prime minister said she was abandoning the government’s commitment to drop the planned tax increase from 19% to 25% – even though it was a central plank of

The Bank of England is set to stop its government bond-buying scheme today after attempting to reassure the UK’s financial markets. The Bank launched the unprecedented intervention after the chancellor’s mini-budget caused chaos within the markets, as well as a potential pension pots crisis. It promised to buy up to £65bn in government bonds –

The head of the International Monetary Fund has delivered a blunt condemnation of the UK government’s mini-budget – pointing out government and Bank of England policies should not be working against each other. Kristalina Georgieva was speaking at a news conference in Washington after the government’s mini-budget unleashed chaos in the markets when it was

As Liz Truss faces open revolt in her party over her planned tax cuts, her chancellor will today try to reassure the IMF that everything is under control. Ministers continue to be under pressure for the market chaos that erupted after the government announced its £45bn package of unfunded tax cuts last month. The prime

The chancellor’s mini-budget “complicated matters” for the Bank of England as it battled to bring down inflation, the International Monetary Fund’s chief economist has told Sky News. In an interview at the IMF’s annual meetings in Washington, Pierre-Olivier Gourinchas warned the coming years would “not be very pleasant” for the global economy. He also said

Jacob Rees-Mogg has declared his confidence in the governor of the Bank of England, but disputed that pension funds are at “systemic” risk. Speaking to Sky News, the business secretary said “of course” he has confidence in Andrew Bailey, describing him as “respected”. He questioned, however, whether there was a “systemic problem” with pensions after

The Bank of England has warned of “a material risk to UK financial stability” as it widened its programme to buy up government bonds. The move has been made as a result of “further significant repricing of UK government debt” in one pension-linked market, the Bank said. It added that it was “dysfunction” and the

The Bank of England’s governor has ruled out extending its bond-buying support for pension funds beyond Friday’s deadline, prompting a dramatic fall in the value of the pound. Andrew Bailey told an event in Washington that funds had “three days left… to get this done” after a series of interventions to support the “dysfunctional” market

Mortgages continued to become more expensive despite the number of products on the market gradually increasing. The average mortgage interest rate on a two-year fixed term mortgage is now 6.3%, according to data compiled by financial information company Moneyfacts. A similar rise has taken place in the average five year fixed term mortgage, which has

The Bank of England has announced it is doubling the value of UK government bonds it can buy up as it enters the final days of its emergency bond buying programme in an effort to support the pension market and allay fears of a cliff edge ending. The Bank has said it is ready to

A former boss of crisis-hit Wasps is spearheading a takeover bid for the Premiership Rugby club that could save it from the threat of relegation or extinction. Sky News has learnt that David Armstrong, who stepped down as Wasps’ chief executive in 2017, is working with Terminum Capital, an investment firm, on a bid to

Octopus Energy is close to clinching a takeover of stricken rival Bulb in a deal that will crystallise up to £4bn of losses for British taxpayers. Sky News has learnt that ministers at the Treasury and the Department for Business, Energy and Industrial Strategy (BEIS) have been told that a sale of Bulb’s 1.6m-strong customer

University graduates across the UK want to see higher starting salaries for first jobs amidst the cost of living crisis. New research by careers platform Bright Network, shared with Sky News, reveals students expect starting salaries to be over £30,000 – 25% more than the current national average starting salary. Due to the impact and

Kwasi Kwarteng, the chancellor, has ruled out tearing up the regime put in place to segregate high street lenders’ investment banking arms that was put in place after the 2008 financial crisis. Sky News has learnt that Mr Kwarteng told a gathering of industry chief executives this week that bank ring-fencing would not be scrapped

The pound’s value ebbed and flowed on Friday – supported by a Bank of England deputy governor’s vow to persist in the fight against inflation but later hammered as stronger than expected US jobs data lifted the dollar. Remarks by Sir Dave Ramsden, a member of the monetary policy committee (MPC) which sets Bank rate,

The number of company insolvencies in England and Wales hit its highest level for 13 years in the second quarter of the year, according to official figures. The Office for National Statistics (ONS) recorded a total of 5,629 business failures between April and June. It was the highest quarterly number since the third quarter of

The latest information on the risks facing gas and electricity supplies suggests there is an increased risk of blackouts this winter – but they can be prevented. National Grid’s Electricity System Operator’s (ESO) updated report on the pressures facing power generators revealed contingency plans for three-hour blackouts in areas where gas-fuelled power falls short of

A measure of confidence in the UK’s creditworthiness has been slashed by another major ratings agency in the wake of the mini-budget, piling further pressure on the under-fire pound. Fitch revealed on Wednesday night that it had cut the outlook for its credit rating on UK government debt to “negative” from “stable”. It maintained its