Rolling coverage of the latest economic and financial news, as FTSE 100 hits alltime high of 8076 points Full story: FTSE 100 hits record high as shares rise amid hopes of interest rate cuts The London stock market is benefitting from expectations that interest rates will be cut sooner in the UK than in the US. The Financial Times reports this morning that some traders are building up bets that the US Federal Reserve will raise interest rates higher, as inflationary pressures in America look stubbornly high. With economic growth still lagging many of its G7 peers, the UK has turned this to i ..read more

Rolling coverage of the latest economic and financial news FTSE 100 hits record closing high amid hopes of interest rate cuts Footsie turns 40: FTSE 100’s rise, rise and stagnation over four decades The City money markets are brought forward their forecast for the Bank of England’s first interest rate cut to August. City investors are pricing in a more rapid easing from the BoE this morning, after its deputy governor Sir Dave Ramsden predicted on Friday that UK inflation could be lower than expected over the next few years ..read more

Rolling coverage of the latest economic and financial news Yesterday’s smaller-than-expected fall in the UK’s inflation rate hasn’t had any immediate impact on the mortgage market. Moneyfacts have reported that average borrowing rates are unchanged this morning, saying: The average 2-year fixed residential mortgage rate today is 5.81%. This is unchanged from the previous working day. The average 5-year fixed residential mortgage rate today is 5.39%. This is unchanged from the previous working day. Trading conditions have continued to be volatile with March in particular seeing softer levels of ..read more

City investors trim their forecasts for rate cuts this year, after inflation falls by less than expected to 3.2% Full story: UK inflation falls to 3.2%, the lowest level since September 2021 Middle East conflict risks sharp rise in oil prices, says IMF The UK’s annual inflation rate fell in March for a second consecutive month, dropping to 3.2% – the lowest level since September 2021 – easing pressure on households amid the cost of living crisis. Figures from the Office for National Statistics (ONS) show inflation as measured by the consumer prices index continued to fall from 3.4% in Febru ..read more

IMF scenario shows how a 15% jump in oil prices would push up global inflation by 0.7 percentage points Try the Be the Chancellor tool UK unemployment rate leaps to 4.2% amid fears of job cuts The Resolution Foundation have dug into today’s UK jobs data, and found that economic inactivity has risen to its highest level since 2015 among working age people. Resolution explain: This rise is broad based – the inactivity rate is up (and the employment rate down) for all age groups except those aged 35-49, and in all English regions outside London and the South East. The number of people inactive ..read more

Chancellor cheers 0.1% rise in GDP, but IoD fears economy still fragile Bank of England forecasts undermined by out-of-date-methods, report finds UK takes another step on path to exit recession as GDP rises City experts sound confident that the UK economy will pull itself out of recession. Today’s news that the economy grew by 0.1% in February and 0.3% in January bolsters hopes that GDP did not shrink in the January-March quarter. “The UK has continued its positive start to the year as GDP grew again in February, albeit only marginally, and looks on course to be pulled out of the short and s ..read more

European Central Bank says rate cuts would be appropriate if inflation keeps falling, as BoE policymaker Megan Greene argues UK rate cuts are a way off There’s takeover drama in the self-storage world this morning, as another UK company falls to a foreign buyer. Europe’s Shurgard has agreed a deal to buy London-listed Lok’nStore, in a deal worth £378m ..read more

Rolling coverage of the latest economic and financial news Rising home and gas costs pushed US inflation higher than expected in March Tesco says grocery inflation has lessened as it plans £500m efficiency savings Ratings agency downgrades China debt outlook over economic uncertainty Fitch’s downgrading of China’s credit outlook today highlights the dilemma that policymakers are facing, as they try to stimulate growth and cut debt levels, explains Lynn Song, chief economist for Greater China at ING: On one hand, there is certainly a need to support economic growth in the near term, and fisca ..read more

Rolling coverage of the latest economic and financial news, as gold rises almost 1% today to $2,365 per ounce UK retailers given hope of ‘green shoots of recovery’ after Easter pickup Mexican precious metals mining company Fresnillo is benefitting from the rally in gold and silver. Fresnillo is leading the risers on the UK’s FTSE 100 share index this morning, up 4.4%, to its highest level since the start of January. Iran’s explicit threat of military retaliation following Israel’s targeting of its Syrian embassy has escalated tensions, amplifying the spectre of a broader regional conflict wi ..read more

Rolling coverage of the latest economic and financial news John Lewis names former Tesco UK boss as next chair of group Jason Tarry says: “The Partnership and its brands stand for trust, value, quality and service and it’s a great privilege to be succeeding Sharon as the seventh Chairman. The Partnership is unique and I’ve long been an admirer of the employee-ownership model, its values and Partner-led customer service. This starts with a sharp focus on being brilliant retailers for customers and investing in growth. “The Board extends its huge thanks to Sharon for successfully leading the P ..read more