Latest news with #CPIinflation
Times
3 days ago
- Business
- Times
Business live: Barclays fined £42m for money-laundering failures
Ruth Gregory, Capital Economics: 'The unexpected rise in CPI inflation . . . may not prevent the Bank of England from cutting interest rates by 25 basis points in August. But it will add to the pressure on the Bank to continue to cut rates at a gradual pace.' Rob Wood, Pantheon Macroeconomics: 'Where does this leave the MPC? Inflation 150bp above target and likely to stay there for the rest of the year is hardly a green light for another rate cut. Traditionally, the MPC would look through headline inflation overshoots driven by government policy as well as energy and food prices, but we doubt they have that luxury now.' Matt Swannell, EY Item Club: 'There doesn't seem to be enough in these inflation numbers to derail an interest rate cut in August and we expect the MPC's established cut-hold tempo to continue at subsequent meetings.' The financial watchdog has fined banking giant Barclays £42 million over its 'poor handling' of financial crime risks. The Financial Conduct Authority said the fines related to separate failings linked to the WealthTek and Stunt & Co businesses. It fined Barclays Bank £39.3 million for 'failing to adequately manage money laundering risks' related to providing banking services to Stunt & Co, the firm run by the socialite James Stunt. Meanwhile, Barclays Bank UK has been fined £3.1 million after it failed to check it had enough information to understand the money laundering risk before opening a client money account for the now-collapsed wealth management firm WealthTek, the FCA said. Gilt yields have edged higher across the board after the surprise rise in inflation to 3.6 per cent in June dampened expectations of a rate cut next month. The yield on the benchmark 10-year UK government bond rose 2 basis points ot 4.65 per cent. The FTSE 100 has opened 4.5 point higher at 8,942,87, with Rio Tinto the biggest riser after its second quarter production update. The index remain below is high of 8,998.06 hit earlier this week. The pound has strengthened slightly against the dollar to $1.3401. Rio Tinto: The FTSE 100 miner reported its strongest quarter of iron production since 2018, a day after promoting Simon Trott, head of its iron ore operations, to chief executive. Production at its Pilbara mines in western Australia rose 5 per cent to 83.7 million tonnes in the second quarter, although shipments fell short of analysts' expectations, disrupted by extreme weather. In other corporate news: AstraZeneca: The pharmaceutical company said anselamimab, an experimental drug, did not meet the main goal of a late-stage study for the treatment of AL amyloidosis, a rare condition that causes a buildup of protein deposits in the body. Antofagasta: The Chilean copper miner said second-quarter production rose 3.5 per cent to almost 315,000 tonnes. Full-year guidance was reiterated. Workspace: The flexible office space provider said occupancy had fallen by 0.3 per cent in the second quarter to 82.2 per cent, with more 'large vacations' to come during the current three-month trading period. The rate of UK inflation rose to a 16-month high of 3.6 per cent in June, official figures showed. The data from the Office for National Statistics is above economists' expectations for the rate to remain unchanged, and makes an interest rate cut in August less likely. Richard Heys, acting chief economist at the ONS, said: 'Inflation ticked up in June, driven mainly by motor fuel prices which fell only sligthly, compared with a much larger decrease at this time last year. 'Food price inflation has increased for the third consecutive month to its highest annual rates since February of last year.' The Bank of England expects inflation, which has accelerated since April due to higher energy prices, to peak at 3.7 per cent before falling back to its 2 per cent target. The monetary policy committee has cut interest rates twice this year, from 4.75 per cent to 4.25 per cent. Markets had been betting on another quarter-point cut next month. • Read in full: UK inflation rises to 3.6 per cent in blow for Reeves Rachel Reeves has accused over-cautious regulators of acting like 'a boot on the neck of businesses' as she announced plans to get ordinary British savers investing in shares. Addressing 350 City bosses at the annual Mansion House dinner, the chancellor set out a string of reforms designed to allow financial firms to grow faster and urged regulators 'not to bend to the temptation of excessive caution'. • Read in full: Reeves tells regulators to loosen up to boost share investment President Trump has placed a 19 per cent tax on goods imported into the United States from Indonesia under a new agreement with the country and said more deals were in the works. The pact with a minor trading partner is among the few ahead of an August 1 deadline for tariffs on most US imports, despite his team touting an effort to bring home '90 deals in 90 days'. So far, framework agreements have been reached with the UK and Vietnam, and an interim deal has been struck with China to forestall the steepest of Trump's tariffs while negotiations continue between Washington and Beijing. Trump said talks with India were moving in a similar direction. Meanwhile, while the European Union is preparing retaliatory measures should talks between Washington and its top trading partner fail.
Times of Oman
4 days ago
- Business
- Times of Oman
CPI inflation in July likely to hit historical low, FY26 to be at 3% below RBI estimate of 3.7%: SBI
New Delhi: India's retail inflation is expected to reach a record low in July 2025, with the average inflation for the financial year 2025-26 projected to be significantly lower than the Reserve Bank of India's (RBI) estimate, according to a report by the State Bank of India (SBI). "We believe that the upcoming July 2025 CPI inflation data is set to breach the lowest ever historical print," the report said. SBI projects that the average CPI inflation for FY26 will be between 3.0-3.2 per cent, which is significantly lower than the RBI's estimate of 3.7 per cent and well below the average of 4.6 per cent recorded in FY25. This sharp moderation in inflation comes on the back of a recent 50 basis points rate cut by the RBI in its June policy. The report noted that with benign inflation expectations in place, the central bank is now focusing on supporting capital formation to ensure more durable and sustained growth. As noted by the Monetary Policy Committee (MPC) in its resolution, the panel remains data-dependent while deciding the future course of monetary policy. The aim is to strike a balance between growth and inflation, the report added. Looking ahead, SBI sees the current inflation trend as firmly benign, even as external trade-related disruptions and unpredictable price movements continue to pose risks. Still, the report hinted at the possibility of another 25 basis points rate cut "sooner than later" to further support economic growth as global uncertainties make it necessary to build for the future. It stated "the plot seems to be spiced with a further 25 bps rate cut (sooner than later) to give an adrenaline boost to the economic juggernaut as global developments necessitate us to build today for future". India's CPI inflation in June 2025 fell to 77-month low at 2.10 per cent, down from 2.82 per cent in May 2025 and 5.08 per cent in June 2024. This decline was largely driven by a sharp fall in food inflation, which also hit a 77-month low of -0.20 per cent. The fall in prices of key food items such as vegetables, pulses, and spices contributed significantly to this decline. However, the report flagged concerns around imported inflation, which continued to rise for the 13th consecutive month in June 2025. Higher gold and silver prices were the main contributors to this increase. The share of imported inflation in the overall CPI build-up rose to 71 per cent in June 2025, up from 50 per cent in May.
