The Bank of England is about to "one-up" the BCE. According to a Reuters poll, it will raise borrowing costs by the end of next year, and perhaps even sooner if high inflation continues. Bank Rate could rise to 0.25% in the fourth quarter of 2022 from its current record low of 0.10%, according to the Sept. 6-9 poll.

Despite today’s rise, the blue-chip index weekly performance is likely to be the worst since the middle of August. Investors were spooked by the spread of the Delta variant, data showing a slowdown in economic growth, as well as the potential effect on dividends of the tax reform announced by the UK government.

It said these reforms were necessary due to the “unprecedented challenge” of Covid, which “had a profound impact on the NHS”.

In 2020, the annual spending on public healthcare in the country represented 10.43 percent of GDP. This is a huge increase from the previous year.

 

 

The Office for National Statistics revealed that economic output only inched up 0.1% in July, the smallest monthly gain since January.

 

Things to read:

ECB Slows Crisis Stimulus in Shift Largarde Says Isn’t Taper (Bloomberg)

When is a market bubble not a bubble? (Financial Times)

Bond Buyers Embrace 72 Hour, 52 Deal Corporate Borrowing Binge (Bloomberg)