Economy
The British are facing a terrifying reality. What problems does the UK have?
British Prime Minister Rishi Sunak has faced a lot of serious problems in the coming years, according to The Daily Mail. Earlier in his New Year’s speech, the British leader stressed that London will still support Ukraine. At the same time, Sunak added that the authorities will put the priorities of the British in the first place. What problems does the UK have?
The article notes that Sunak made an appeal to his fellow party members to “the fight starts now,” promising to build a country that would make posterity proud. But according to the Daily Mail, Sunak “faced a terrifying reality.”
The first challenge for the British leader was the “disastrous” revelation of the chief physician of the local ambulance service, who said that up to 500 patients were dying every week because of ward failures. The second shocker was that a record 45,756 migrants crossed the Channel last year, according to official information.
“And this despite the enormous efforts of ministers to try to stop the smuggling of people,” the publication recalled.
Also, the railroad unions have reiterated their willingness to strike in transport, and this at a time when the country is facing new protests by nurses and ambulance staff. Issues such as skyrocketing inflation, the cost of living crisis and England’s economic problems also remain relevant, the Daily Mail summarized. The GBPUSD exchange rate also demonstrates the problems in the country.
Western countries have increased sanctions pressure on Russia because of Ukraine. The disruption of supply chains led to a rise in fuel and food prices in Europe and the US. In the UK, the rising cost of living has hit millions of households. The U.K. The Financial Conduct Authority earlier reported that about 32 million British residents (60% of the adult population) are struggling to pay their bills amid high inflation and a record rise in the cost of living.
The Bank of England raised its benchmark interest rate by 50 basis points to 3.5 percent from 3 percent. The regulator also said that Britain’s economy has entered a recession, which is expected to last through 2023 and the first half of 2024. The annual inflation rate in Britain was 10.7% in November.
Earlier, we reported on the ECB’s rate decision: the rate should reach a “restrictive” level.
© Reuters. Russian Central Bank Governor Elvira Nabiullina attends a news conference in Moscow, Russia June 14, 2019. REUTERS/Shamil Zhumatov/File Photo
MOSCOW (Reuters) – Russia’s central bank will need two to three months to make sure that inflation is steadily declining before taking any decision on interest rate cuts, the bank’s governor Elvira Nabiullina told RBC media on Sunday.
The central bank raised its key interest rate by 100 basis points to 16% earlier in December, hiking for the fifth consecutive meeting in response to stubborn inflation, and suggested that its tightening cycle was nearly over.
Nabiullina said it was not yet clear when exactly the regulator would start cutting rates, however.
“We really need to make sure that inflation is steadily decreasing, that these are not one-off factors that can affect the rate of price growth in a particular month,” she said.
Nabiullina said the bank was taking into account a wide range of indicators but primarily those that “characterize the stability of inflation”.
“This will take two or three months or more – it depends on how much the wide range of indicators that characterize sustainable inflation declines,” she said.
The bank will next convene to set its benchmark rate on Feb. 16.
The governor also said the bank should have started monetary policy tightening earlier than in July, when it embarked on the rate-hiking cycle.
© Reuters. FILE PHOTO: Workers walk past an under-construction area with completed office towers in the background, in Shenzhen’s Qianhai new district, Guangdong province, China August 25, 2023. REUTERS/David Kirton/File Photo
SHANGHAI (Reuters) – China’s top planning body said on Saturday it had identified a second batch of public investment projects, including flood control and disaster relief programmes, under a bond issuance and investment plan announced in October to boost the economy.
With the latest tranche, China has now earmarked more than 800 billion yuan of its 1 trillion yuan ($140 billion) in additional government bond issuance in the fourth quarter, as it focuses on fiscal steps to shore up the flagging economy.
The National Development and Reform Commission (NDRC) said in a statement on Saturday it had identified 9,600 projects with planned investment of more than 560 billion yuan.
China’s economy, the world’s second largest, is struggling to regain its footing post-COVID-19 as policymakers grapple with tepid consumer demand, weak exports, falling foreign investment and a deepening real estate crisis.
The 1 trillion yuan in additional bond issuance will widen China’s 2023 budget deficit ratio to around 3.8 percent from 3 percent, the state-run Xinhua news agency has said.
“Construction of the projects will improve China’s flood control system, emergency response mechanism and disaster relief capabilities, and better protect people’s lives and property, so it is very significant,” the NDRC said.
The agency said it will coordinate with other government bodies to make sure that funds are allocated speedily for investment and that high standards of quality are maintained in project construction.
($1 = 7.1315 renminbi)
© Reuters. Russian Central Bank Governor Elvira Nabiullina attends a news conference in Moscow, Russia June 14, 2019. REUTERS/Shamil Zhumatov/File Photo
MOSCOW (Reuters) – Russia’s central bank will need two to three months to make sure that inflation is steadily declining before taking any decision on interest rate cuts, the bank’s governor Elvira Nabiullina told RBC media on Sunday.
The central bank raised its key interest rate by 100 basis points to 16% earlier in December, hiking for the fifth consecutive meeting in response to stubborn inflation, and suggested that its tightening cycle was nearly over.
Nabiullina said it was not yet clear when exactly the regulator would start cutting rates, however.
“We really need to make sure that inflation is steadily decreasing, that these are not one-off factors that can affect the rate of price growth in a particular month,” she said.
Nabiullina said the bank was taking into account a wide range of indicators but primarily those that “characterize the stability of inflation”.
“This will take two or three months or more – it depends on how much the wide range of indicators that characterize sustainable inflation declines,” she said.
The bank will next convene to set its benchmark rate on Feb. 16.
The governor also said the bank should have started monetary policy tightening earlier than in July, when it embarked on the rate-hiking cycle.
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