Author: Paul Hannon

The eurozone has learned some lessons from its last debt crisis, the bloc is unlikely to suffer a repeat of that traumatic episode as France wrestles its debt problems.

The central bank’s chief economist said the size of the response that is now needed to contain inflation may not be as large investors now expect.

The government presents its annual budget later this month, but might find it difficult to reassure bond investors that it can lower its debts.

The BOE last month left its key interest rate at 3.75%, although investors expect to see an increase to 4% in November.

A failure of AI to deliver a hoped-for acceleration in productivity and economic growth could deliver a fresh blow to prices of government bonds, the bank said.

The rise in government bond yields will help limit the impact of higher energy costs on U.K. prices, but the Bank of England may have to raise its key interest rate if inflationary pressures build, Deputy Governor Dave Ramsden said.

A narrow focus on Europe’s problems without acknowledging its strengths is making businesses wary, pushing households to build savings and putting Europe’s economic future at risk, according to ING’s chief economist.

The decline is a sign that rising borrowing costs following the European Central Bank’s decision to raise its key interest rate are hindering investment.

An agreement with Russia to halt attacks on energy infrastructure and the restoration of grain exports through the Black Sea, would boost Ukraine’s economy, the European Bank for Reconstruction and Development said.

The government borrowed more in August than a year earlier, a setback for its plans to reduce its deficit as it prepares to outline a new budget next month.

The bloc’s GDP picked up more rapidly than previously estimated in the quarter through June, but that resilience will be tested if the Iran war continues to block the Strait of Hormuz.

Businesses expect the prices they charge to rise by 3.8% over the coming 12 months, a decrease from the 3.9% expected in July.