The Latest Breaking News from The Bank of England

Risks of interest rate overkill rising fast even though wages grew strongly in last quarter

UK regular pay growth highest since 2001 while unemployment rate rises unexpectedly; rouble recovers afters Bank of Russia raises rates at extraordinary meeting

Data suggests prices are rising even though production costs are flat. Yet wages remain policymakers’ chief concern

City Comment: The Bank of England will take the punchbowl away from the party soon enough

Shortly after moving into No 10, the Prime Minister invited the British public to judge him on five key promises.

“If it isn’t hurting it isn’t working.” That was the message from then-chancellor John Major in 1989 during a previous period when interest rate rises were used to tackle high inflation, said Larry Elliott in The Guardian.

HSBC UK, Nationwide Building Society and TSB are also among the lenders which have announced mortgage rate cuts this week.

In 1937 the English economist Joan Robinson proposed that “when capitalism is rightly understood, the rate of interest will be set at zero and the major evils of capitalism will disappear”. John Maynard Keynes, who had taught Robinson, suggested something similar a year earlier in slightly more qualified and technical…

Experts believe wages increased at a faster pace than prices in July