Third, the less interest deposits yield, the more an individual needs to save in order to sustain a given income. In a low interest rate environment, everyone draws in their horns. Negative rates are likely to be even worse. These factors all tend to slow economic activity. Little or no […]
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Over half of young first time-buyers reliant on the Bank of Mum and Dad
More than half of young first-time buyers need financial support from parents in order to achieve their dreams of home ownership. A report by Legal & General, the insurer, found that 56pc of first-time buyers now rely on financial support from the so-called Bank of Mum and Dad to help them onto the […]
Elderly forced to bank online in pandemic
T he speed of the switch from physical to online banking is creating a societal divide just as vulnerable people need more support than ever due to the pandemic. Poorer, elderly, disabled people and those who live in rural areas are the most likely to be left behind, as more […]
Ignore ‘Chicken Licken’ pessimists, says Bank of England chief economist
Excessive pessimism over the state of the economy risks undermining the recovery and making a tough situation worse, the Bank of England’s chief economist has warned. Andy Haldane said Britain had “recovered far faster than anyone expected” but was still beset by fears for the economy. Such concerns could be “self-fulfilling”, […]
Bank of England official defends negative rates as recovery is ‘interrupted’
A new CBI survey has shown more than three -quarters of businesses want a deal to be agreed, with almost half of respondents saying that the impact of dealing with Covid-19 has hindered preparations for Brexit. Rob Wood, chief UK economist at Bank of America, said: “I expect the Bank […]
Bank of England moves a step closer to negative rates
The Bank of England took another step towards controversial negative rates on Thursday amid rising Covid infections and a looming unemployment crisis. The Bank’s Monetary Policy Committee unanimously voted to hold interest rates at their record low 0.1pc and kept the scale of its money printing programme unchanged at £745bn. […]
Relief for City as EU extends bank access to London clearing houses
The European Union is to tell its banks that they can continue to access UK clearing houses until mid-2022, allying fears in the City that London could be suddenly shut out of the lucrative market. Clearing houses – which process financial products worth hundreds of billions of pounds every day, acting as middlemen between buyers and sellers for […]
The Bank of England won’t act this week
No inflation surge while households cling to savings Inflation shouldn’t be a barrier to further action either. Empty supermarket shelves seen at the onset of the pandemic meant that economists fretted as much about the potential effect on supply as well as demand, as well as firms passing on increased […]
Brits living in the EU face bank account closure “lottery” because of Brexit
Britons abroad face a current account closure “lottery” as banks start to cut services in EU countries because of Brexit. Britain’s biggest bank, Lloyds Banking Group, which also owns Halifax and Bank of Scotland, has written to 13,000 expats who live in Europe to tell them their accounts held in Britain […]
Briton Jane Fraser becomes first woman to run a Wall Street bank at Citi
Jane Fraser has been appointed as the new chief executive of Citigroup, making her the first woman and the first Briton to lead a Wall Street bank. Ms Fraser, who became Citi’s president last year, will join the board immediately, replacing Mike Corbat, who has led the New York-based bank […]