LONDON: The Bank of England (BoE) faces the tricky task this week of upgrading its economic and employment forecasts without stoking speculation in markets that interest rates will rise any time soon.
The BoE took a new approach to coaxing Britain’s economy back to health in August when it when it made a fall in unemployment central to its thinking about when to raise interest rates from their record lows.
Since then, Britain’s recovery has exceeded expectations and outpaced most other rich economies, fuelling speculation that the BoE might have to move faster than it thought. Growth of 0.8 percent in the third quarter beat the 0.5 percent pencilled in by the Bank’s Monetary Policy Committee and unemployment in the latest quarter fell to 7.7 percent, below the rate of 7.9 percent expected by the BoE.
Indian oil buyers get longer Iraqi credit
NEW DELHI: Iraq is willing to double the credit period on crude sales to 60 days if Indian refiners buy more in 2014, the head of refineries at Hindustan Petroleum said yesterday.
Iran has also sweetened the deal to expand its dwindling market share by offering free shipment and a nominal discount to Indian refiners, sources said last week.
Iraq along with Saudi Arabia stepped up sales to India after western sanctions shut payment avenues and made trade with Tehran difficult.
“Iraq is very positive. They are willing to raise credit period to 60 days and waive off opening of letters of credit (LCs) provided volumes are increased,” B K Namdeo said.
Low-cost UK airline to cut 500 jobs
LONDON: Struggling low-cost British airline Flybe said yesterday it plans to axe another 500 jobs as it pursues a round of cost-cutting measures.
The job losses are expected to save the airline £26m ($41.5m) per year from next year, on top of previous initiatives to save £40m this year and £45m in 2014-15.
The carrier’s new chief executive, Saad Hammad, has also pledged to review unprofitable routes and bases and improve the way aircraft and crew are deployed.
The company said: “This will require tough decisions to be taken over the coming months and, regrettably, this proposal may result in the loss of around 500 jobs spread across the business.”
Dubai Islamic Bank posts 33.5pc profit
DUBAI: Dubai Islamic Bank (DIB), the largest Shariah-compliant lender in the emirate, yesterday said its nine-month net profit jumped 33.5 percent.
The bank made Dh1.2bn ($326.7m) in the nine months to September 30, it said in a statement, up from Dh899m in the corresponding period last year. It did not give a figure for third-quarter profit in the statement.
Agencies
