Latest news with #GregMacvean
Scotsman
16-07-2025
- Business
- Scotsman
UK inflation shock: Where now for interest rates as cost-of-living hits near 18-month high
'Inflation like this can no longer be dismissed as a blip. It's now a barrier to cutting interest rates.' – Peter Stimson, MPowered Mortgages Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... News of an unexpected and unwelcome uptick in inflation will rattle Bank of England policymakers and cloud the outlook for future interest rate cuts. Official statistics revealed that the annual measure of consumer prices index (CPI) inflation rose to 3.6 per cent in June, up from 3.4 per cent in May and the highest reading in almost 18 months as food prices rose for the third month running. Advertisement Hide Ad Advertisement Hide Ad The increase in the headline inflation rate surprised economists who had been expecting it to remain unchanged at 3.4 per cent. Shoppers will have noticed the cost of some food items continuing to rise. Picture: Greg Macvean The Office for National Statistics (ONS) said annual food price inflation hit the highest level since February 2024, while transport costs and a spike in oil prices also pushed up the cost of living. Consumers will have noticed several items in their shopping trollies continue to rise, though other products have stabilised and a few have even eased since food price inflation peaked well into double-digit territory in early 2023. The surprise increase in inflation will be watched closely by the Bank of England ahead of its next interest rate decision on August 7. While the central bank's nine-strong monetary policy committee (MPC) is widely expected to trim rates again next month, from 4.25 per cent to 4 per cent, given a slowing wider economy, the latest unexpected rise in inflation may see policymakers tread cautiously further out. Peter Stimson, director of mortgages at lender MPowered Mortgages, said the 'intake of breath at the Bank of England will have been audible' as he warned that mortgage rates could nudge higher in the coming weeks. Advertisement Hide Ad Advertisement Hide Ad 'Inflation like this can no longer be dismissed as a blip. It's now a barrier to cutting interest rates,' he said. 'While the weakness of the economy means the Bank of England will be keen to resume rate cuts in coming months, the likelihood of an August cut has plunged from near certain to barely 50/50. This is likely to cause a shift in the swap rates which determine mortgage interest rates. The outlook for future interest rate cuts from the Bank of England, above, has become more cloudy. 'Mortgage rates may well have fallen as far as they can for now, and in the coming weeks rates may even creep back up as lenders recalibrate in response to rising swap rates.' Sarah Coles, head of personal finance at investment platform Hargreaves Lansdown, said a reduction in borrowing costs at the start of August was 'still likely to be on the cards'. She added: 'Mortgages and savings rates are already on their way down, as the markets price in an August cut, and then another later in 2025. Day-to-day we've seen rates wavering, but over time they're trending south. Annuities have inched down, but continue to deliver decent incomes.' Advertisement Hide Ad Advertisement Hide Ad Coles said food and drink prices were 'eating away at our spending power', noting that part of the problem was higher national insurance payments for employers being passed on as suppliers and supermarkets cover higher costs. Within transport costs, the ONS said air fares soared by 7.9% between May and June, marking the biggest rise since 2018. Beyond August's meeting, the MPC is due to gather on three more occasions before the end of the year - September 18, November 6 and December 18. Rob Clarry, investment strategist at Evelyn Partners, the UK wealth manager, said the UK continued to face 'stickier inflationary pressures' compared with other advanced economies. 'This is arguably reflected in the bond market with gilt yields remaining higher than their European counterparts, despite the UK facing a similarly weak growth profile,' he noted. Advertisement Hide Ad Advertisement Hide Ad '[The inflation report] complicates the outlook for the MPC, although traders continue to expect two further 25 basis point [quarter point] interest rate cuts this year.' The inflation figures come after UK gross domestic product (GDP) shrank by 0.1 per cent in May, following a 0.3 per cent fall in April and leading to fears of a contraction overall in the third quarter. Jobs figures this week are expected to show a further slowdown in wage growth, which may help smooth the path for an interest rate cut. The latest ONS data showed food and non-alcoholic drink price inflation lifted to an annual rate of 4.5 per cent in June, up from 4.4 per cent in May. Advertisement Hide Ad Advertisement Hide Ad Taking off Within transport costs, the ONS said air fares soared by 7.9 per cent between May and June, marking the biggest rise since 2018. Rail fares also rose month-on-month, having fallen a year earlier, while fuel prices fell only slightly last month compared with a larger fall a year ago. Hargreaves Lansdown's Coles said: 'Air fares continued to surprise. This is a common seasonal trend, but was much more striking this year, with the biggest June rise since 2018. 'Prices took off on long-haul and European routes in particular. It appears that wages rising considerably ahead of inflation has encouraged us to jet off this year.' The average price of petrol fell by 0.5 pence a litre during June, compared with a drop of 3p a litre between May and June 2024. Advertisement Hide Ad Advertisement Hide Ad Elsewhere, the data showed the ONS's preferred measure of inflation, consumer prices index including owner occupiers' housing (CPIH), lifted to 4.1 per cent last month from 4 per cent in May. Meanwhile, the retail prices index (RPI) rate of inflation rose to an annual 4.4 per cent in June from 4.3 per cent in May.
Edinburgh Reporter
12-07-2025
- Entertainment
- Edinburgh Reporter
Edinburgh International Jazz & Blues Festival is underway with Carnival on Sunday
The 2025 Edinburgh International Jazz & Blues Festival has begun with a packed programme in venues all over the city including The Famous Spiegeltent in St Andrew Square. Browse the programme and find something to go to from now until 20 July – or get on down to Princes Street on Sunday for the free Carnival which takes place from 1 to 6.30pm in West Princes Street Gardens. Expect a riot of colour, dance and music. The weather is going to be hot and the entertainment will be vibrant. Venues include Currie Community Centre, Edinburgh Napier University, Leith Arches, Leith Dockers Club, Murrayfield Church, North Merchiston Club, Oxgangs Neighbourhood Centre, Ranch Community Centre, St Bride's Centre, St Bride's Centre Cafe, St Mark's Episcopal Church, The Jazz Bar, The Pitt, The Queen's Hall, Usher Hall and of course West Princes Street Gardens. Edinburgh Jazz and Blues Festival launched in the Famous Spiegeltent in St Andrew Square Pic Greg Macvean 10/07/2025 Edinburgh Jazz and Blues Festival launched in the Famous Spiegeltent in St Andrew Square Pic Greg Macvean 10/07/2025 Edinburgh Jazz and Blues Festival launched in the Famous Spiegeltent in St Andrew Square Pic Greg Macvean 10/07/2025 Like this: Like Related
Scotsman
30-06-2025
- General
- Scotsman
Edinburgh buses: Trial of 7-7-7 bus lanes delayed for about a year
Plans to trial an extension of Edinburgh's bus lanes to 12 hours a day, every day of the week have been delayed by about a year. Sign up to our daily newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to Edinburgh News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Councillors agreed last year to introduce a pilot of the so-called 7-7-7 scheme - where bus lanes operate from 7am to 7pm, seven days a week - on the No 44 route from Juniper Green to Musselburgh. It was due to get under way earlier this year, but has been held up because of traffic orders and a lack of cash. The idea of 7-7-7 bus lanes is to stop buses being held up by traffic congestion. Picture: Greg Macvean | JP License Advertisement Hide Ad Advertisement Hide Ad The idea of 7-7-7 bus lanes is to stop buses being held up by traffic congestion and make public transport more attractive by cutting bus journey times and improving reliability. Most of Edinburgh's bus lanes currently operate only at peak hours and on weekdays, but it has been argued that since Covid travel patterns have changed and the restrictions need to cover a larger part of the day. However, councillors agreed on a trial on one bus route rather than an immediate roll-out after a consultation found mixed views. Green councillor Chas Booth raised the issue of the delay at the council's transport and environment committee, asking why the scheme had been held up. Advertisement Hide Ad Advertisement Hide Ad He said: "The original committee decision from August of last year stated that the trial would start in the first quarter of 2025, so that's already at least three months delayed." Officials said there were two main reasons - one about overlapping orders, which would hopefully be sorted out later this year; the other about funding for the work. One official said: "We had hoped we would be able to secure some funding from Transport Scotland's Bus Infrastructure Fund and indeed have submitted a proposal for that several months ago. "However, unfortunately, we still haven't heard whether that Bus Infrastructure Fund is going forward or not, so we're still waiting to hear on that." Advertisement Hide Ad Advertisement Hide Ad Another official said it was hoped to mobilise the contractor for the necessary infrastructure works in December and conclude the works in February 2026. Cllr Booth said that four years ago it had been agreed to have a full roll-out of 7-7-7 across the city, but now even the limited trial had been held up. "Is there anything we can do to speed up progress on this?" he asked. Gareth Barwell, the council's executive director of place, said he shared the frustration felt at the delay and added the council would have to look for a "Plan B" if the external funding did not materialise. Committee convener Stephen Jenkinson said: "I'm disappointed it has taken so long to get to this point and we haven't managed to make as much progress as I'd like. I want to see fi there are any ways in which we can speed this up."
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Scotsman
30-06-2025
- Business
- Scotsman
No cheer for borrowers as rates held
Greg Macvean Photography In a widely predicted decision, the Bank of England held interest rates at 4.25 per cent this month. Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... While many will have hoped for a cut – especially those of us with a mortgage to pay – an uncertain global political and economic environment plus ongoing inflationary pressures saw that being ruled out, for now at least. But many commentators are expecting two more rate cuts by the end of the year, especially with three of the nine Monetary Policy Committee members voting this month to reduce the base rate to 4 per cent. Advertisement Hide Ad Advertisement Hide Ad All eyes will now turn to the next meeting in August to see what will be announced then and whether it will bring some more cheer for borrowers. In a Bank of England statement following the rate decision, it said: 'There remain two-sided risks to inflation. Given the outlook, and continued disinflation, a gradual and careful approach to the further withdrawal of monetary policy restraint remains appropriate.' It added: 'The committee will continue to monitor closely the risks of inflation persistence and what the evidence may reveal about the balance between aggregate supply and demand in the economy.' You'll notice on Page 7 that one of our long-term partners, Waverton, has officially become W1M. This follows an announcement in March that the firm was consolidating with London & Capital, providing 'exceptional breadth and depth of global advice and planning, combined with institutional-quality investment management'. Advertisement Hide Ad Advertisement Hide Ad W1M manages more than £21 billion in assets, placing it among the UK's largest wealth managers. The merged firm says it aims to grow its market share, with a focus on high net-worth and ultra-high net-worth individuals, charities, and institutions. W1M said it combines the strengths of both firms to address the complex, international, and intergenerational needs of wealthy families, including cross-border advice, institutional-quality investment management, global tax and portfolio reporting. In this issue of Scotsman Money, Sean Lowson of W1M explores the speculation that Cash ISAs are under threat and what this could mean for savers. Meanwhile, Tom Ham chief executive of Calton examines Inheritance Tax and explains why 'estate planning is both an art and science'. Craig Barrie of estate agency Revere explains how he has drawn from his experience of working in Dubai to offer clients a personal service. And in our Q&A section, Andrew Sutherland of Acumen answers a query from a reader on putting shares into an ISA wrapper.
Edinburgh Reporter
11-06-2025
- Entertainment
- Edinburgh Reporter
Review – Quadrophenia, A Mod Ballet ⭐⭐️⭐️⭐️
'We are the Mods, we are the Mods, we are, we are, we are the Mods!' At the Festival Theatre this week, Sadler's Wells transport audiences back to an infamous Whitsun Bank Holiday weekend in May 1964 that became known as the Battle of Brighton, when Mods and Rockers clashed along the beach of the East Sussex seaside resort. At Festival Theatre until Saturday Continue reading here. Capital Theatres – the cast of Quadrophenia – A Mod Ballet on the Royal Mile in Edinburgh ahead of the show opening tonight and running until Saturday 14th June Pic Greg Macvean 10/06/2025 Like this: Like Related
