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02.06.26 - 07:12
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Despite what the UK right will tell you, appeasing bond markets has actually led to instability | Andy Beckett (The Guardian)
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Austerity has benefitted bond traders but impoverished British society and led to the rise of populism. Is it right that we carry on adhering to their interests?Should politics always be dominated by economics? Should questions about how governments and voters pay for things – whether by earnings, taxes or borrowing – be settled before we consider the wider consequences?In an anxious capitalist democracy such as Britain, with a modern history of patchy economic success and intermittent but recurring crises over public debt, the answer may seem obvious: governments and voters always need to behave in ways that fit with the market forces that shape our economy.Andy Beckett is a Guardian columnist Continue reading......
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29.05.26 - 15:00
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Bank of England′s Bailey says no rush to raise interest rates amid Iran war uncertainty (The Guardian)
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Inflation can be tolerated above 2% target for now 'given context of softness in real economy', governor saysBusiness live – latest updatesThe Bank of England is in no rush to raise interest rates while the outcome of the Iran war remains uncertain and the UK's growth rate stays weak, the governor, Andrew Bailey, said.In a signal that borrowing costs will remain at 3.75% at least during the summer, Bailey said it was tolerable for inflation to stay above the Bank's 2% target during the current crisis. However, that would change if a more permanent increase in prices began to take effect. Continue reading......
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21.05.26 - 15:36
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Britain′s politicians need to worry less about the bond markets – and more about the Bank of England | Daniela Gabor (The Guardian)
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A new model of central banking would weaken the power of bond vigilantes – and help progressive politicians pay for transformative changeDaniela Gabor is professor of economics and macrofinance at Soas, University of LondonA spectre is haunting British politics: the bond markets.Defending Keir Starmer after the disastrous local election results earlier this month, the chancellor, Rachel Reeves, warned that a leadership contest would trigger the wrath of those investors who lend the state money by buying and selling UK government bonds (also known as gilts). The prospect of Andy Burnham winning that contest prompted shriller warnings: the left-leaning contender, after all, had dared to suggest governments should stop “being in hock” to the bond markets.Daniela Gabor is professor of economics at Soas, University of London Continue reading......
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20.05.26 - 13:01
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A "Rubbish, Knee-Jerk Reaction": UK Treasury Pushes Food Price Caps As Inflation Re-Accelerates (ZeroHedge)
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A "Rubbish, Knee-Jerk Reaction": UK Treasury Pushes Food Price Caps As Inflation Re-Accelerates
UK supermarkets are being urged by the government to limit food prices in return for easing regulations.
As first reported by The Financial Times, the price caps are 'voluntary' and would apply to key groceries – such as eggs, bread, and milk - according to retail industry sources with knowledge of the plans.
In return, the government has said it would offer “incentives” to the supermarkets, which the people said could include easing packaging policies and potentially delaying costly changes to rules around healthy food.
As one may well expect, supermarkets are understood to be strongly opposed to the plans.
The Treasury has declined to comment.
The proposals come as Sir Keir Starmer's government is battling to address public concern over the cost of living.
Scottish retailers recently condemned a similar policy by the Scottish National Party as a “1970s-style” gimmick.
One ...
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19.05.26 - 12:24
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Großbritannien: Gilt-Renditen steigen wegen Inflations- und Führungssorgen (Anleihencheck)
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Bonn (www.anleihencheck.de) - Die politische Unsicherheit im Vereinigten Königreich bleibt erhöht, während die Spekulationen über die Führungsspitze anhalten, so die Analysten von Postbank Research in ihrer aktuellen Ausgabe von "PERSPEKTIVEN Week up front".
Diese Unsicherheit habe die heimischen Anleihemärkte belastet; die Renditen britischer Staatsanleihen seien in der vergangenen Woche wieder in Richtung Mehrjahrzehnthochs gestiegen. [mehr]...
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