RATE WATCH - 24 to 30 Dec 07
Please click above for the daily blog.
Weekend Summary to be posted on 30 Dec 07.

RATE WATCH - 17 to 23 Dec 07
Further interest rate cuts in early 2008 seem to be extremely likely. Tame inflation figures which show inflation to be at 2.1% gives the BoE more leeway for rate cuts.

RATE WATCH - 11 to 16 Dec 07
In figures to be released next week, the CPI for November is expected to have edged higher following pressure from food and commodity price inflation.

Savings ratio to rise - 10 Dec 07
Halifax has predicted that the UK savings ratio is to rise next year. Total savings in the UK economy currently stand at £4.2trn, three times more than household debt.

Pound strengthening vs dollar, falling vs euro - 9 Dec 07
As the sterling rises against the dollar, the pound has quietly fallen 10% this year against the euro, proving a boon to the UK export market to Europe.

James Murdoch to take on big role at News Corp - 8 Dec 07
At 35 years of age, James Murdoch, the son the Rupert Murdoch has been offered the chance to run News Corp's European assets.

Bank cuts rate to 5.5% - 7 Dec 07
Amid concerns over slowing growth the BoE cuts is base rate by 0.25% to 5.5%, easing the cost of borrowing for the first time in 2 years. Further rate cuts are expected early next year.

The Bank of England must cut rates today - 6 Dec 07
In an article by Anatole Kaletsky in today's Times, he argues that the MPC must cut rates now or could risk a recession next year and a banking collapse.

SWFs to boost global liquidity - 5 Dec 07
Sovereign wealth funds could help to relieve the negative effects of the credit crunch by providing necessary liquidity. Also, I find out that banks are beginning to 'hoard' cash...

Profit warnings rock City & Oil could hit $115 - 4 Dec 07
Yesterday, four profit warnings hit the City. This comes just before the BoE begin their two day meeting tomorrow to decide interest rates. In City AM, Morgan Stanley predict $115 oil.

Stagflation or "Stagflation-lite" - 3 Dec 07
Stagflation would be strong a word to describe the slowing growth and rising inflation in economies around the world - instead "stagflation-lite" seems more correct!

Fed face a difficult decision - 2 Dec 07
On 11th December, it will be interesting to see whether it will cut rates by a quarter point because of the "headwinds" facing the US economy.

A dwindling dollar - 1 Dec 07
The dollar has fallen 6% in trade weighted index since August, but the fall has not yet become chaotic because of a cyclical convergence between US and the world, and the credit crisis.

King: Threat of inflation remains - 30 Nov 07
Mervyn King said that the months ahead would be "rather unconfortable" as the MPC is caught between rising inflation and slowing growth.

A 'bumpy ride' ahead for the UK economy - 28 Nov 07
In a speech by Andrew Sentance yesterday he argued that the global financial turmoil and rising oil prices make it very difficult to see its effect on inflation - a 'bumpy ride' awaits...

China pressurised to let currency appreciate - 27 Nov 07
The EU this week is expected to pressurise China into letting their currency strenghten in a bid to prevent the trade deficits in Europe from escalating.

Credit crisis and long term implications - 26 Nov 07
In an article in today's FT, Lawrence Summers outlines the reasons why this credit crisis could have long term implications, affecting us for the 'rest of the decade and beyond'.

Oil prices making BoE's job difficult - 25 Nov 07
Despite the uncertainty and the negative effects of the recent financial credit crisis which call for a fall in the Bank Rate, high oil prices add significant upward pressure to inflationary.

Predicted negative hard data filters through - 24 Nov 07
Having argued in the Target 2.0 competition that it is only a matter of timing to cut rates (where we proposed a 0.25% cut), bad news is starting to show up in the UK economy.

Airbus threatened by falling US dollar - 23 Nov 07
The falling dollar has hit Airbus hard - as a result they have had to cut its spending in research and development significantly. The chief executive described it as "life-threatening".

Through to the Area Finals of Target 2.0! - 22 Nov 07
Our team made it through the Regional Round of the Target 2.0 Bank of England competition, which means that we are now in the Area Finals to be held in February 2008!

Decoupling theory and the Flat World theory - 21 Nov 07
In today's FT, John Kay wrote about why emerging markets have not decoupled. He also raised the issue of decoupling versus the idea of a flat world. (Oil price update included)

UK immigrants points system- 20 Nov 07
Just like the points system in Australia and Canada, the UK next year will adopt the same. But the criteria will mean that entrepreneurs without degrees will not be able to enter.

Standard Chartered and Temasek - 19 Nov 07
Chinese banks approach Temasek's 17% stake in Standard Chartered, an example of the rise of Sovereign Wealth Funds (SWFs).

Decision change: rate cut in December - 18 Nov 07
Until now, I had been backing a rate cut early in 2008, but as new data comes through, a pre-emptive rate cut in December looks to be more wise.

A "Christmas Crunch" - 17 Nov 07
Consumers are likely to be hit this Christmas as a result of the recent financial turmoil. The three month Libor rate saw another spike this week.

Warning of house price slowdown - 16 Nov 07
Nationwide have warned that house price inflation could fall from the current 9.7% to 0% early next year raising further fears of a housing market slowdown.

BoE warnings in November Inflation Report - 15 Nov 07
The BoE have released their Inflation Report which points out the near term downside risks to growth but at the same time rising inflation.

Inflation above 2% target - 14 Nov 07
Inflation has risen to 2.1% after recent spikes in food and oil prices. Oil prices have not reached $100, but could just be round the corner.

Near $100 oil doesn't seem to matter - 13 Nov 07
Despite high oil prices, businesses seem to be resilient. Oil seems to have lost the power to shock but they may not be able to withstand further rises.

Target 2.0 and the International Economy - 12 Nov 07
I am in the school's Bank of England Target 2.0 team where we have to take on the role of the Monetary Policy Committee and decide interest rates.

Scepticism over "decoupling" - 30 Oct 07
Although I have argued till now that the Asian economies have decoupled from the West, there are many reasons why they have not yet decoupled - it will take long time.

Fed likely to cut rates to 4.5% - 29 Oct 07
Amid the financial turmoil and the slowdown in the US housing market, the Fed is likely to cut rates to 4.5% in its next meeting.

Oil reaches $92 - 26 Oct 07
Amid geopolitical tensions between the US and Iran, weaknesses in the US dollar and low inventory concerns, oil reaches a record $92 a barrel. Is a $100 round the corner?

October - The Cruel Month - 24 Oct 07
Having a look at the Octobers over the last century, it seems to be the month when things go wrong in the equity markets - 1929, 1987, 1997 and now!

2007 Nobel Prize for Economics- 18 Oct 07
American economists have won the 2007 Nobel Prize for their work on mechanism design theory, an extension of John Nash's Game Theory, a Nobel winner.

Branson attempts to take on the Rock - 13 Oct 07
Richard Branson has taken steps to take over Northern Rock and re-brand it as Virgin Money. This attempt is among a few others Northern Rock is considering.

Challenges facing emerging economies - 12 Oct 07
Emerging economies seem to be resilient despite the credit crisis and has fuelled the idea that they have decoupled from the US and Europe but other challenges lie ahead.

New OECD report on India - 11 Oct 07
A report by the OECD on India predicts that it will be able to sustain a growth rate of 10% as long as it adopts the right policies.

Darling's Pre-Budget Report - 10 Oct 07
Among other issues, Darling's Capital Gains Tax changes are one of the most controversial. Many argue that the changes to the CGT will have negative consequences on entrepreneurs.

China's current account surplus - 9 Oct 07
China's trade surplus has increased to £185bn. The US point out the negative impact the Renminbi is having on their own economy as they suck in relatively cheap Chinese imports.

Bull market despite credit crisis - 7 Oct 07
The news throughout this past summer made everything look awful but market is feeling bullish - how can this odd behaviour be explained?

Improving China's transport infrastructure - 6 Oct 07
At a presentation I made yesterday about my trip to India, one of the points I highligted were the infrastructural problems. China also has similar issues, but Beijing is improving.

When should Brown call the election? - 4 Oct 07
It seems likely that Gordon Brown will call the election very soon. The economy is doing well at the moment, but if Brown leaves it too late to call an election, it may be to long.

The dangers of a falling dollar - 23 Sep 07
Last week the dollar fell by 1.5% after the Fed cut rates by 50bp. A falling dollar will result in a loss of foreign investor confidence which could spell trouble ahead.

"When the facts change, I change my mind" - 20 Sep 07
Mervyn King, the Governor of the BoE has had to defend himself today and argued that it would have been "irresponsible" for the BoE to have acted earlier.

Interest rates around the world - 20 Sep 07
Lower interest rates has led to the bond markets pricing higher inflation expectations into longer term credits. It seems that the control of interest rates is waning.

Tough times ahead for King - 19 Sep 07
The Bank of England has decided to inject £10bn into the money markets. But is this too little, too late for Mervyn King, whos credibility is now at stake?

Government steps in - 18 Sep 07
The government has decided to guarantee the deposits of Northern Rock customers and of any other banks in an effort to calm fears.

A world of higher inflation - 17 Sep 07
Alan Greenspan argues that the disinflationary impact of the intergration of a billion people from China and the former Soviet bloc will begin to ebb, making life harder for the Fed.

Fed likely to cut rates by 25bp - 17 Sep 07
Tomorrow, the Fed is likely to cut base rates by 0.25% in light of recent bad unemployment data and the downturn in the housing market.

Northern Rock bailed out by BoE - 15 Sep 07
As a result of the credit crisis, the Bank of Enland has had to step in to bail out Britain's fifth largest mortgage lender, Northern Rock.

Bank of England keeps rate at 5.75% - 6 Sep 07
The BoE has decided to keep rates at 5.75% in light of recent events in the subprime market which has led to the current liquidiy squeeze.