Interest rate hikes are coming. Most members of the Federal Reserve now believe the US economy could sustain a historic rise in interest rates as soon as December.
Inflation has reached a trough, at least for now.
Inflation was negative for a second successive month in October, at -0.1%, as price cuts for food and the fading impact of student fee rises kept a lid on the cost of living.
The UK’s inflation rate is expected to have remained in negative territory when official figures are released on Tuesday, leaving the Bank of England in little hurry to start raising interest rates.
Oil prices are set for a slow recovery, according to the latest report from International Energy Agency (IEA), which cautioned against the deep investment cutbacks in the industry.
A sharp slowdown in global trade on the back of China’s troubles poses a threat to economic growth and calls for richer countries to step up investment while keeping monetary policy loose, a leading thinktank has warned.
Pay rises will remain subdued over the next year, despite Britain’s robust recovery and complaints from business leaders of acute skills shortages, according to a survey of employers.
The Bank of England has sent a reassuring message to businesses and households that interest rates are to remain at their record low well into next year as it cut its forecast for near-term inflation.