All the day’s economic and financial news, as BoE deputy governor Sir Jon Cunliffe joins the widening split over interest rates * Latest: Tesco cutting 1,200 jobs * Nationwide: House price have recovered.. * ...But London growth at five-year low * Cunliffe: No rush to raise rates * The agenda: House prices, central bank chatter 1.29pm BST Time for a quick recap THE SPLIT AT THE BANK OF ENGLAND OVER WHEN TO START RAISING INTEREST RATES HAS DEEPENED, AFTER DEPUTY GOVERNOR SIR JON CUNLIFFE DECLARED HIS HAND. Cunliffe is firmly in the ‘not yet’ camp, putting him alongside boss Mark Carney, but in opposition to at least two other policymakers. The Bank of England is clearly very divided, with deputy governor Cunliffe this morning sending rather mixed signals, ostensibly backing Carney by saying this was not the time to raise interest rates, but also noting “(We) do have to look at what’s happening to domestic inflation pressure, and I think that on the data we have at the moment, gives us a bit of time to see how this evolves” - ‘a bit of time’ being the key observation. Related: Tesco continues savings drive as it cuts 1,200 head-office jobs Related: Co-op Bank secures £700m rescue deal from hedge funds Still getting lots of questions re Draghi’s speech in Sintra. Hawkish market reaction largely unjustified imo. 1/nhttps://t.co/guYqjfEdCW 1.25pm BST MEANWHILE, IN WHAT AMOUNTS TO THE FIRST PUBLIC SIGN THAT LIGHT IS FINALLY AT THE END OF THE SEEMINGLY NEVER-ENDING GREEK CRISIS TUNNEL, CREDITORS HAVE ANNOUNCED THAT THE COUNTRY COULD TAP INTERNATIONAL CAPITAL MARKETS BY THE END OF THE YEAR. “We are half-way. We have a good framework for (non-performing loan) management. Now its time for NPLs [non-performing loans] to be reduced. Greece has created an independent tax authority. Now it’s time to collect taxes … A privatisation and asset fund has been set up. Now it’s time to privatize and generate value.” Continue reading...
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