People’s view of their own financial situation and general economic outlook have got worse, says market research firmWorries about the economic outlook and a squeeze on household budgets dented consumer confidence this month, according to a closely watched survey.The monthly barometer of consumer mood from the market research firm GfK dropped to its lowest level since the aftermath of last summer’s EU referendum. Continue reading...

Traders got into a panic about impending rate increases last week, but they have taken fright too soonWherever investors looked last week, the picture was rosy. The eurozone, for so long the laggard in the global growth league, could be seen zipping along following first-quarter GDP growth that hit 0.6%.German business confidence hit a record high, and France and Italy finally joined the party with higher than expected output. In the US, official estimates upgraded growth for the first quarter to an annualised 1.4% from an initial estimate of 0.7%. Even Japan, the standard-bearer for more than 20 years of economic stagnation, is due to exceed expectations this year as exports soar. Continue reading...

It’s time for the bank and the Global Partnership for Education to spend money they have set aside for these emergenciesImagine, if you will, a city the size of Birmingham with a population of a million or so. Now imagine that a disaster has befallen that metropolis, a brutal war that has caused its citizens to flee with little more than the clothes on their backs. Picture the lines of refugees heading west to find a place of safety, which they eventually find across the border in Wales. There, despite severe financial constraints, the million displaced people are met with warmth and generosity.This is not a science-fiction story. Substitute South Sudan for Birmingham and Wales for Uganda and you get an inkling of what is happening in one of the poorest parts of the world’s poorest continent.Related: 'The refugees are like our brothers': Uganda's example to the world – in pictures Continue reading...

If the public did not vote to be poorer, as a resurgent chancellor suggests, they must be disturbed by the mounting evidence of looming economic damageAs the true extent of the Brexit farce becomes more apparent, it is now open warfare between the Brexiters, while the rest of the world – with the possible exceptions of Presidents Putin and Trump – look on in sympathetic bewilderment.One of several satisfactory aspects of the election result was the way that Theresa May and her advisers at No 10 met their comeuppance over their widely leaked plans to sack the chancellor of the exchequer. Continue reading...

The digital currency can now be bought at ATMs around the countryMy journey into the dark economy starts much as expected: in front of a computer screen, late at night. It ends somewhere quite unexpected, in a humdrum setting a world away from the stereotype of modernity, equality and sticking it to the man promised by digital currencies such as Bitcoin: it ends in a used DVD store, my purchase refused.The dark economy is moving into the light. In a few scattered places, 40 or so in London, one in Manchester, another in Birmingham, Bitcoin ATM machines have appeared, issuing the cryptocurrency from an unlikely array of convenience stores, vaping outlets and barbershops. Does this mean that the virtual has become real? Can anyone join the Bitcoin challenge? Can you buy stuff with Bitcoin? And what the heck is a cryptocurrency anyway?Related: How can I invest in bitcoin? Continue reading...

Low interest rates, high house prices, new car deals and low-cost credit cards make an explosive mixture - which regulators may struggle to keep a lid onOne thing sure to upset Bank of England officials is any suggestion that the Old Lady of Threadneedle Street has gone soft on the banking industry and turns a blind eye to reckless lending. It brings back disturbing memories of the 2008 credit crunch, the chaos it brought to the economy and the damage it caused the institution’s reputation.Last week, the Bank of England, which has become the overarching regulator of the banking system, made a point of being tough on the banks following the publication of its latest financial stability report. Continue reading...

Theresa May’s top aide says student debt is ‘huge issue’ in speech urging Tories to modernise to win over Labour votersBritain may need to have a national debate on university tuition fees, Theresa May’s most senior minister has said after urging the Tories to modernise to win over young metropolitan voters who backed Jeremy Corbyn’s Labour.Damian Green said the current system, with fees capped at £9,250 a year, allows UK universities to deliver high quality courses and teaching, and accounts for the country’s disproportionate number of top institutions.Related: The Guardian view on the Queen’s speech: In office but not in power | EditorialRelated: Thousands join anti-austerity march in central London Continue reading...

Economic growth following the Brexit vote has come to an abrupt halt as consumers raid piggy banks to battle rising inflation and stalled wagesThe consumer-driven momentum that has kept the British economy afloat since the Brexit vote is declining rapidly, with new data showing households in the grip of the most protracted squeeze on living standards since the economic crisis of the mid-1970s.Against a backdrop of rising prices and stagnant wage growth, incomes adjusted for inflation have now fallen for three successive quarters, the first time this has occurred since the International Monetary Fund had to bail Britain out in 1976.Related: BoE economist wants to hear about hardship in the UK - first stop Wales Continue reading...

Andy Haldane, Bank of England’s chief economist, hears from families shopping around for cheap bread and stopping children going on school tripsAndy Haldane, the Bank of England’s chief economist is in Wales, on tour. But this is not the usual speechifying trip, addressing business audiences on the dry details of monetary policy. Instead Haldane – who some regard as a potential successor to the governor of the Bank, Mark Carney – is in listening mode, on the first leg of a nationwide tour that is aiming to feed the everyday experiences of ordinary households into monetary policymaking.Britain’s poorest families, he says, are being hardest hit by the rising prices of essentials like food and fuel, and action to prevent higher inflation becoming entrenched must therefore be a priority.Related: Sharp rise in UK food prices inflates household shopping bill Continue reading...

The preferred Korean bidder for the South Australian steelworks has asked for government funding while a second buyer has offered to buy Arrium without any federal assistanceThe sale of Arrium and its troubled Whyalla steelworks is expected to be delayed today while the federal government finalises a deal that would give one of the bidders up to $400m in taxpayers’ funds.The future of Whyalla and thousands of Arrium workers hangs in the balance as administrators finalise a deal to sell off the company.Related: The steel city blues: the future of Whyalla and why we should all care | Mark Bahnisch Continue reading...

Soaring level of borrowing on credit cards, overdrafts and loans could bolster case for interest rate rise, say expertsBritain’s hard-pressed consumers are increasingly turning to credit cards, overdrafts and loans to support their spending, according to the Bank of England.Threadneedle Street’s monthly report on money and credit found that the outstanding amount of unsecured consumer credit rose by 10.3% in the year to May, five times as fast as the growth rate of earnings.Related: Many Britons are hooked on costly credit. Here’s what the new minister should do | Rowena Young Continue reading...

Ex-chancellor and Evening Standard editor will use unpaid lecturing role at university to champion ‘northern powerhouse’George Osborne, the editor of the Evening Standard and former chancellor of the exchequer, has added a sixth job to his portfolio – that of honorary professor of economics at the University of Manchester.Related: What exactly does George ‘six jobs’ Osborne add to my economics degree? | Francesca Rhys-WilliamsGeorge Osborne has become a professor of economics at the University of Manchester pic.twitter.com/pOgJHz83psRelated: Osborne's Evening Standard savages Theresa May's election campaign Continue reading...

Now that desperate people have seen how money can somehow be found to pay off the DUP, they are going to get very angry with this governmentWatch Theresa May scramble in the shadow of no majority and the subsequent paper-thin Queen’s speech and it’s as if government as we know it has been entirely disbanded. While EU negotiations and a costly DUP deal take centre stage (and £1bn of public money) a domestic policy agenda is missing in action.This would be disturbing at the best of times, but it is happening as Britain teeters on the edge of its worst living-standards crisis in modern politics. Continue reading...

Rolling coverage of the day’s political developments as they happen, including Theresa May and Jeremy Corbyn at the first PMQs of the new parliament

There are things that money just can’t measure, and nature is valuable because it can’t have a priceThere are some things that money can’t buy; there are others that it can but shouldn’t. The boundary between these two categories isn’t fixed and is in any case constantly disputed. Some things can’t be bought because they seem impossible, like a return ticket to the moons of Jupiter, or a live woolly mammoth. But it’s perfectly possible that technology will advance to the point where these are possibilities and then people who can afford them will want them too. The one thing that a fortune will never be large enough to buy is the possession of a conscience.Those who have money tend to believe it should have the ability to buy anything. But freedom for the rich diminishes the liberties and security of the people without money. If money can buy good health, as the inequality statistics show that it can, the poor may find they have no access to medical care at all, as the horrors of the American health care system illustrate today. So any civilised society has rules about things (among them justice) that money is not allowed to buy.Related: Great Barrier Reef valued at A$56bn as report warns it's 'too big to fail' Continue reading...

The pound rose above $1.29 after the Bank of England governor said some removal of monetary stimulus could become necessary

Jeremy Corbyn has linked tragedy to Conservative spending cuts but PM says matter has arisen after decades of neglectTheresa May and Jeremy Corbyn have clashed over whether the tragic deaths of 80 people in Grenfell Tower fire is “one of the disastrous effects of austerity” or has been developing as a result of decades of neglect dating back at least to Tony Blair’s government in the 2000s.Related: Grenfell Tower tragedy shows effects of austerity, Corbyn tells May Continue reading...

Any change to rates would be linked to economic activity and Brexit outcomes, but Bank governor says still ‘too early’ to make that callThe governor of the Bank of England has sent the pound higher on the foreign exchanges after he warned that the continued growth in the UK economy would eventually lead to higher interest rates. Sterling rose by almost a cent against the dollar to stand at a post-election high on remarks seen as bringing forward the date of the first increase in the cost of borrowing since the start of the financial crisis 10 years ago.Although Carney broadly reiterated his “wait and see” approach to interest rates, the pound was trading at just below $1.30 amid speculation that the Bank’s monetary policy committee would over the coming rescind the emergency quarter-point cut in interest rates after last summer’s Brexit vote.Related: Bank of England deputy opposes rate hike, as UK house prices rebound - business live Continue reading...

Two years ago, Jeremy Corbyn challenged political orthodoxy by not attacking benefits claimants. Now public opinion has aligned with his stanceDo you resign yourself to public opinion as it is now, or do you attempt to change it? That is a question that has long divided Britain’s left and produced two competing strategies. The “centrist” approach is one that amounts to resignation. Voters are where they are, and it is largely futile to campaign to change minds when Labour is in opposition. It will simply render the party out of touch. A longstanding centrist argument was that the public believes austerity is unfortunate but necessary, and so economic credibility is defined by signing up to spending cuts. Labour’s left, on the other hand, refutes this pessimism. Public opinion can change – and dramatically so – if the counter-arguments to rightwing orthodoxy are heard loudly and forcefully.Related: Dear Andrea Leadsom, shrinking the state is the opposite of patriotism | Polly ToynbeeRelated: Clinging to austerity will kill this government – the small-state dream has evaporated | Paul Mason Continue reading...

Despite Justin Trudeau’s efforts to stress his country’s female-friendly credentials, a new report has identified a ‘substantial gender gap’ in its workplaces. Is Canada’s feminist image too good to be true?Canada’s prime minister is a self-proclaimed feminist. Two years ago, Justin Trudeau’s appointment of the country’s first gender-equal cabinet made headlines worldwide. Recently, his government has released what has been called the “first feminist foreign aid policy”.But now Canada’s own record on gender equality has been called into question by a perhaps unlikely source. The McKinsey Global Institute, a research arm of the corporate consultancy giant, has declared that the country’s workplaces have a “substantial gender gap”.Related: 'Let women eat cake too': why equality is not a zero-sum gamePay matters, but so do working conditions. Many jobs that women work in are precariousRelated: The study that shows life is a lot more unequal than you (probably) think Continue reading...

Former head of policy for David Cameron believes people are willing to see taxes go up to fund NHS and social careOne of the key architects of David Cameron’s austerity programme has suggested the government must consider tax rises and increased spending on public services to respond to overwhelming pressure on social care, schools and the NHS.Oliver Letwin, former chancellor of the Duchy of Lancaster who was Cameron’s head of policy, said he believed most people were prepared to see a modest rise in tax bills in order to fund investment in public services, but stopped short of saying that should mean an end to the public sector pay cap.Related: Social mobility: radical reform urged to repair divided BritainRelated: Here’s what the Queen’s speech needed to say – but didn’t | Jonathan Freedland Continue reading...

Soaring temperatures and rising inflation deliver biggest rise in more than five yearsBooming sales of ice-cream, gin and cider during the heatwave have combined with a jump in inflation to deliver the biggest rise in supermarket sales in more than five years.Sales revenue rose 5% in the 12 weeks to the end of June, the biggest increase since March 2012, in stark contrast to the 0.2% decline a year before, according to the latest market share data from Kantar Worldpanel. Continue reading...

Bank of England brings forward annual stress tests as it grows anxious over lenders’ exposure to consumer creditThe Bank of England is to force banks to strengthen their financial position in the face of a rapid growth in borrowing on credit cards, car finance and personal loans.The intervention by Threadneedle Street means banks will need to set aside as much as £11.4bn of extra capital in the next 18 months and is intended to protect the financial system from the 10% rise in consumer lending over the year.Related: Central banks raise alarm over new crash after steep rise in lending Continue reading...

UK government will spend £802bn this year, so funds ‘not much more than rounding error’, says IFS deputy headThe deal to spend an extra £1bn over two years in Northern Ireland will do little to disturb the public finances.Of the funds, about £400m will be directed at new physical infrastructure, £150m on better broadband, and £40m will tackle deprivation. Another £350m will be spent on health and education services. Continue reading...

UK central bank has ordered British banks to set aside more capital, and rushed forwards its consumer credit stress tests

The leader of the House of Commons accuses broadcasters of not being patriotic – yet the Tories have betrayed the nation through cuts to our most valued services and institutionsPatriotic? Who? Not the Tory Brexiteers who have brought this country so alarmingly low. While EU politics are rebooted with new Franco-German confidence, our government is only saved by the Democratic Unionist party. Ignominy doesn’t get much more mortifying than that.Related: Peston on Sunday gives Leadsom's call for patriotism a droll replyRelated: Remainers need a more patriotic tune to challenge a hard Brexit | Rafael Behr Continue reading...

Hung parliament, pay squeeze and housing slowdown took consumers’ spirits to lowest level since Brexit vote, says pollConsumer confidence slumped in the 12 days after the general election to its lowest level since the aftermath of last year’s Brexit vote, as households were unnerved by the impact of a hung parliament.A poll by YouGov found that consumers feared the unstable political situation would hit house prices and dent their living standards, which have already come under pressure in recent months from high inflation and sluggish wages growth.Related: Business Today: sign up for a morning shot of financial news Continue reading...

Deloitte study finds 47% were considering leaving after Brexit, while overall one-third of non-British workers could leaveOne third of non-British workers are considering leaving the UK, with highly skilled workers from the EU most likely to go, according to new research into the impact of Brexit on the jobs market.The consultancy firm Deloitte found 47% of highly skilled workers from the EU were considering leaving the UK in the next five years. In a report on Tuesday, it warns of serious implications for employers, raising the pressure on ministers to come up with sensible immigration plans and to find ways to improve the skills of UK workers and make better use of robots in the workplace.Related: Business Today: sign up for a morning shot of financial news Continue reading...

All the day’s economic and financial news, including a TUC conference on insecure work and reaction to Italy’s €17bn taxpayer-funded bank deal

Putting jobs and the economy at the top of the Brexit agenda means staying in the single market. Such a move would now attract cross-party supportAs Jeremy Corbyn has argued over Brexit, Labour must prioritise jobs and the economy, and that, for 50 Labour parliamentarians who have signed a new statement, means staying in the single market and the customs union – something the TUC and business also want.It’s the largest, richest market in the world: with more than 500 million people, and worth £11tn – fully a quarter of global GDP. It accounts for half our trade, and a surplus in services of £17bn.Related: As Labour politicians, we reject a hard-right Brexit, and defend the single market | Stephen Doughty, Chuka Umunna and othersDoes the single market mean uncontrolled EU migration? No.Related: Can Brexit be stopped? The answer is in our hands | Jonathan Freedland Continue reading...

Bankers warn that high-risk borrowers pose danger to stability of global financial markets

Hard, soft or left? One year on and theories abound, but politicians are yet to define their vision for the shape of Britain’s post-EU futureFew predicted it at the time, but the real effect of the EU referendum a year ago has been political rather than economic. One prime minister has resigned and another has been so badly mauled that she may not survive much longer. Britain is closer to having a Labour government with a radical leftwing agenda than it has been for decades.

Governor Mark Carney likely to use financial stability report to highlight risks from rising borrowingWe have heard plenty from the Bank of England’s monetary policy committee of late, with its members divided over how to set interest rates in a post-referendum Britain. The debate centres on when to raise borrowing costs from their record low and whether the economy – and squeezed consumers – can take it.This week it will be the turn of the Bank’s financial policy committee to hold forth. Its twice-yearly financial stability report will be presented by the governor, Mark Carney, on Tuesday and he is likely to use the health check to highlight the problem of consumer debt burdens in the UK. With real incomes squeezed, households have been dipping into savings and maxing out their credit cards. Continue reading...

David Davis was kidding himself when he told European politicians they were powerless to prevent Britain extracting a good trade dealThe investment plans of Jaguar Land Rover are unlikely to be an isolated reaction to Brexit. Last week the carmaker revealed amid a fanfare of publicity that it would be hiring 5,000 extra engineers and, with less fanfare, that it would begin work on its next-generation electric car in Austria.Very simply, the company appears to have made a judgment that for the next two to three years the pound will remain low and, with this discount in place on its exports, it will profit from shifting a huge volume of diesel cars from factories in the West Midlands and Merseyside to the rest of the world. Continue reading...

Nine years after the global economy almost imploded, bankers are finally in the dock. But we are still at great risk of a banking calamityIf you had told people in the City at the height of the financial crash in 2008 that it would take almost nine years for the first top bankers to face prosecution, few would have believed you. If you had then said that this first prosecution would relate to suspected fraud over one bank’s supposed attempt to avoid nationalisation – rather than the crash itself – the bankers involved in the crisis would have laughed in disbelief: surely, they aren’t going to let us get away with that?Related: Senior Barclays bankers charged with fraud over credit crunch fundraisingThere was too little political capital and almost no political will to break up the banks and make them simple again Continue reading...

All the day’s economic and financial news, including new GDP figures from France, and a healthcheck on eurozone companies

European Central Bank’s bid for more powers represents challenge to City’s dominance of £880bn-a-day businessLondon is facing renewed pressure over its dominance of the €1tn (£880bn)-a-day euro clearing market after the European Central Bank set out proposals aimed at giving it more oversight of the lucrative business.The move by the Frankfurt-based ECB – the central bank for the 19 countries using the euro – follows a report by the European commission that called for the EU to have more powers over clearing of financial products denominated in euros after Brexit.Related: Business Today: sign up for a morning shot of financial news Continue reading...

Yes, UBI could be an important part of a radical agenda. But beware: its proponents include neoliberals hostile to the very idea of the welfare stateFor some time now, the radical left has been dipping its toes in the waters of universal basic income (or unconditional basic income, depending on who you talk to). The idea is exactly as it sounds: the government would give every citizen – working or not – a fixed sum of money every week or month, with no strings attached. As time goes on, universal basic income (UBI) has gradually been transitioning from the radical left into the mainstream: it’s Green party policy, is picking up steam among SNP and Labour MPs and has been advocated by commentators including this newspaper’s very own John Harris.Supporters of the idea got a boost this week with the news that the Finnish government has piloted the idea with 2,000 of its citizens with very positive results. Under the scheme, the first of its kind in Europe, participants receive €560 (£473) every month for two years without any requirements to fill in forms or actively seek work. If anyone who receives the payment finds work, their UBI continues. Many participants have reported “decreased stress, greater incentives to find work and more time to pursue business ideas.” In March, Ontario in Canada started trialling a similar scheme.Related: The Greens endorse a universal basic income. Others need to follow | Jonathan BartleyWhat’s needed is not the arbitrary adoption of UBI, but a conversation about what a welfare state is for Continue reading...

Order books at highest level for 29 years as CBI warns government to put ‘economy first’ in Brexit talksBritain’s manufacturers are enjoying the strongest demand for their products in almost 30 years as a recovering global economy and a weaker pound boost order books.The monthly snapshot from the CBI found that export and total order books were both at their highest for decades – providing some hope that a stronger manufacturing sector would cushion the effect of higher inflation on consumer spending.Related: Brexit economy: UK faces slowdown amid living standards squeeze Continue reading...

The era of the dinosaur vanity project is over – money is desperately needed to redress the effects of austerity. Tough decisions are neededThey haven’t gone away. The great spending dinosaurs of the political dark ages, back before June 2017, are still roaming the jungle. Theresa May’s first decision as prime minister, to approve the £18bn Hinkley Point nuclear power station, is still crashing about Whitehall. Now the national audit office (NAO) has added its voice to those calling it a really bad deal. The project now has no independent supporters.Hinkley was a hangover from when Whitehall’s energy department took leave of its senses and approved anything that looked remotely “green”. It just passed the bill to the Treasury. The Treasury then passed the risk to Chinese investors and French contractors. The risk proved so great that these backers swiftly passed it back to the Treasury and future British taxpayers and energy users, in loan guarantees and sky-high prices. Continue reading...

It’s been a poor year for the pound, savers and UK-focused retailers but firms with sizeable foreign earnings have prosperedBritain’s consumers and UK-focused firms are among the biggest losers one year on from the shock Brexit vote that drove the value of the pound to its lowest level in more than 30 years.On the first anniversary of the EU referendum, financial services company Hargreaves Lansdown said clear winners and losers have emerged, with the pound taking the biggest hit on the markets. Blue chip companies with a large proportion of foreign earnings are among the biggest winners.Related: Business Today: sign up for a morning shot of financial newsRelated: UK households cut back as Brexit effect on pound hits living costs Continue reading...

Outgoing external rate-setter says Bank of England policymakers are wrong in assessment of economic conditionsA Bank of England policymaker has heaped further pressure on Mark Carney, the governor, with a warning that the central bank’s policymakers have failed to spot an inflationary spiral that needs to be choked off with an immediate increase in interest rates.In the same week that Andy Haldane, the chief economist, said he was considering voting for an increase in rates before the end of the year, Kristin Forbes, an outgoing member of the monetary policy committee, used her valedictory speech to say the governor and a majority of the other MPC rate-setters were wrong to believe inflation would peak soon and then retreat, allowing rates to stay low. Continue reading...

The Bank of England’s chief economist is right to say a casualised, de-unionised and atomised labour market has weakened workers’ ability to bid up wages. He’s wrong to say it may be time to raise interest ratesLife is getting interesting at the Bank of England. Next month will mark the 10th anniversary of the last time the technocrats of Threadneedle Street raised the official cost of borrowing, but the chances of an interest rate rise are higher than they have been for some while. Mark Carney, the Bank’s governor, thinks the time is not yet ripe for a tightening of policy. He used his delayed Mansion House speech in the City of London this week to voice concerns about the negative impact of higher inflation on consumer spending and the uncertain effects of Brexit negotiations on the economy. But three of the eight members of the Bank’s monetary policy committee took a different view, and they were almost joined by a fourth, the Old Lady’s chief economist, Andy Haldane, who said the time was fast approaching when he would vote for an increase. Mr Haldane’s intervention was significant, not just because he has hitherto been seen as one of the MPC’s most prominent “doves”, nor because his intervention came little more than 24 hours after that of his boss. Rather, it was because the bombshell was dropped at the end of a speech that seemed to argue the opposite.For years, the Bank of England has been trying to find the answer to a puzzle: why is wage growth so weak even though unemployment keeps coming down? Britain currently has its lowest jobless rate since the mid-1970s, but there has been no sign of an acceleration in earnings growth. Quite the contrary, in fact. At least part of the answer, according to Haldane’s analysis, stems from structural changes in the labour market: a decline in union membership; more self-employment; more zero-hours contracts and more part-time and temporary work. The clock has been turned back not one century but three, so that the world of work in 2017 bears more than a passing resemblance to Britain as it was before the Industrial Revolution. There were no trade unions. Most people were self-employed or worked in a small business. The Uber drivers of that era were the agricultural workers hired only when there were cows to be milked or crops to be harvested. In those pre-industrial days, the relationship between wages and unemployment was strikingly similar to the one seen since the recession of 2008. Continue reading...

Protest, for better employment rights, is latest in series that has hindered rubbish collection in major cities in GreeceGreece has been hit by fresh strike action as thousands of public sector workers marched through Athens in protest against the debt-ridden country’s austerity programme.Related: Creditors agree terms to disburse Greece's €8.5bn bailout funds Continue reading...

All the day’s economic and financial news, as the CBI reports that UK manufacturing picked up in June

Last week’s bailout is only a short-term compromise – the two creditors must work together on a proper solutionThe International Monetary Fund has resurrected an old technique – commonly used in the 1980s during the Latin American debt crisis – that would allow Greece to avoid a payment default next month on debt owed to European creditors. The reprieve also gives the IMF and its European partners time to sort out their technical differences on the struggling country’s growth and budget outlook. But the fund’s elegant compromise still leaves Greece under the shadow of an enormous debt overhang; reducing it requires that Europe find a way to set aside national politics and act on the basis of economic logic and necessity.Europe and the IMF have been unable to reconcile two views of Greece’s debt sustainability, with the two sides’ differences spilling over into the public domain. Guided mainly by a cash-flow analysis, European authorities argue that low interest rates and long maturities have made the nation’s debt sustainable. But the fund notes that, at almost 200% of GDP, Greece’s stock of debt deters investment and capital inflows. For the IMF, meaningful debt reduction is critical for generating the confidence and credibility needed to break Greece out of a prolonged period of impoverishment.Related: Creditors agree terms to disburse Greece's €8.5bn bailout fundsRelated: The eurozone must reform or die | Kenneth Rogoff Continue reading...

Two former members of Bank of England’s interest rate-setting committee discuss the outlook after the general electionProfessor of economics at Dartmouth College, New Hampshire, and member of the Bank’s monetary policy committee from June 2006 to May 2009Related: Brexit economy: UK faces slowdown amid living standards squeeze Continue reading...

The latest monthly Guardian analysis finds households experiencing rising costs and firms concerned over political uncertaintyBritain’s vote to leave the EU has squeezed living standards, hit consumer spending and dampened the country’s growth prospects, a Guardian analysis of economic news over the year since the referendum shows.One year since voters narrowly opted for Brexit, the Guardian’s monthly tracker of economic news paints a gloomy picture, with households facing rising costs and firms fretting over falling demand and political uncertainty.Related: 'Markets don’t like chaos' - experts debate Brexit Watch dataRelated: How has the Brexit vote affected the UK economy? June verdict Continue reading...

How has the economy reacted to the vote to leave the EU on 23 June 2016? Each month we look at key indicators to see what effect the Brexit process has on growth, prosperity and trade in the UK Continue reading...

The US president says he does not want poor people managing the economy. Trump told a rally of his supporters in Cedar Rapids, Iowa, on Wednesday, he feels a ‘very rich person’, such as former Goldman Sachs president Gary Cohn, was better qualified to be in charge of commerce