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Pound hits three-week low after Bank of England says slowing jobs market could prompt rate cut – business live | BusinessNotice: Undefined variable: newid in D:\vertrigo\www\voice\see.php on line 32  Key events European stock markets are on track to open lower, following Donald Trump’s threatened 30% tariff on EU imports. The EUROSTOXX 50 index of large European companies is down 0.72% in futures trading, while DAX futures (the German stock market) are down 0.84%, Reuters reports. The euro is also weakening this morning, after Donald Trump that goods imported from the European Union will face a 30% US tariff rate from 1 August. Trump’s latest trade war bombshell has disappointed the EU, as the two sides had been negotiating for weeks. Europe had hoped Trump would agree to a bare bones deal similar to the UK’s pact, that would have lowered tariffs on car exports and steel. But instead, the US president has decided to impose higher costs for US importers who buy goods from the EU. In response, the EU has decided to delay, again, its own retaliatory tariffs on US exports, European Commission president Ursula von der Leyen said yesterday:
Given Trump’s track record, the planned August tariff increases aren’t guaranteed… That may be why the market reaction is modest, so far, with the euro down 0.17% at $1.1669. Introduction: Bank of England could cut rates if jobs market slows, governor saysGood morning, and welcome to our rolling coverage of business, the financial markets and the world economy. The pound has dropped to a three-week low this morning, after the governor of the Bank of England said it could make larger cuts to interest rates if the jobs market slows quickly. Andrew Bailey told The Times that “slack” was opening up in the UK economy, following the increase to employers’ national insurance contributions. That slack should create downward pressure on inflation. Bailey insisted: “I really do believe the path is downward” for interest rates. Bank rate is currently 4.25%, following four quarter-point cuts in the last year, with the Bank next scheduled to set rates on 7 August, Bailey added:
Governor Bailey also pointed to Rachel Reeves’s decision to hike taxes on employers, saying companies were:
Last week, the Guardian revealed that the National Trust is to cut at least 550 jobs in efforts to save £26m after changes made in Reeves’s debut budget pushed up labour costs. Hospitality firms have repeatedly warned that higher NICS will force them to cut jobs. And indeed, new data this morning shows that the number of people hunting for jobs has surged at the fastest rate since the height of the Covid pandemic. Following Bailey’s rate cut hint, the pound has dropped by 0.2% this morning to $1.3467. That’s its lowest level since 23 June, three weeks ago, extending its recent losses. Source link Posted: 2025-07-14 07:07:48 |
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