ECB keeps interest rates on hold despite eurozone inflation fears
The European Central Bank kept interest rates on hold on Thursday for the third meeting in a row despite concerns that a modest economic recovery across the eurozone would fuel inflation,The ECB kept its key deposit rate at 2% despite annual price growth rising to 2,2% across the 20-member euro bloc in September, up from 2% in August and 1,7% a year earlier,In the 27-member EU, annual inflation was 2.
6% in September, up from 2,4% in August, according to Eurostat,The ECB said its 26-member governing council’s view of inflation was “broadly unchanged”,It said: “The robust labour market, solid private sector balance sheets and the governing council’s past interest rate cuts remain important sources of resilience,”Christine Lagarde, the ECB president, said the council’s decision to hold rates was unanimous and came after the balance of risks shifted, but remained balanced, leaving the central bank “in a good place”.
She said: “The EU-US trade deal reached over the summer, the recently announced ceasefire in the Middle East and today’s announcement of progress in the US-China trade negotiations have mitigated some of the downside risks to economic growth.“At the same time, the still-volatile global trade environment could disrupt supply chains, further dampen exports, and weigh on consumption and investment.”Irene Lauro, eurozone economist at Schroders, said there was growing confidence in the ECB that its policy of low interest rates was supporting a recovery in growth without sparking inflation.“Political uncertainty in France could weigh on its economy, but elsewhere the outlook is improving and suggests monetary policy is filtering through to the real economy,” she said.The eurozone economy expanded by 0.
2% in the third quarter from the previous three months, according to preliminary data from the European Commission published on Thursday.The increase was higher than the 0.1% City analysts expected, with the rise driven mainly by strong performances in Spain, which expanded by 0.6%, and a 0.5% increase in France.
The ECB rate decision follows a divergence across the eurozone in prices growth, which the central bank is expected to maintain at about 2%.Cyprus kept inflation at zero, while it increased modestly to 1.1% in France and 1.8% in Italy and Greece.However, Romania reported an inflation rate of 8.
6%, to add to Estonia’s 5.3% and Slovakia’s 4.6%.Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionThe ECB has said it is concerned by the high level of inflation from services, food and energy.However, it has trimmed its main deposit rate to 2% over the past year and a half to about half the rate in the UK and US.
Most analysts said it was likely interest rates would remain on hold while the balance of risks to inflation remained in balance,Mark Wall, the chief economist for Europe at Deutsche Bank, said: “Where’s the smoking gun for a rate cut? Despite the US tariffs, despite all the various sources of uncertainty, the European economy continues to eke out some growth,Economic ‘resilience’ is keeping the ECB doves in check, and the policy pause on the rails,”The Bank of England is widely expected to keep its headline rate at 4% when its policymakers meet on 6 November,On Wednesday the US Federal Reserve trimmed its benchmark rate by a quarter point to a range of 3.
75% to 4%, the second cut this year.
Ministers’ claims to have helped JLR in doubt as £1.5bn support left untouched
Jaguar Land Rover has not drawn down any of a £1.5bn loan facility guaranteed by the government, with suppliers expressing anger over ministers’ claims to have supported the carmaker’s supply chain after a crippling hack.Britain’s biggest automotive employer was forced to shut down all of its wholly owned factories from 1 September for more than a month, after cyber-attackers compromised key computer systems.Liam Byrne, the Labour MP who heads of parliament’s business select committee, on Friday wrote to the business secretary, Peter Kyle, asking for clarification as to whether any money had reached JLR, and if the aid was requested by the carmaker.Suppliers to JLR have privately expressed anger about the government’s messaging, which appeared to take credit for helping them
Amazon shares surge as AI boom fuels cloud growth; Nvidia boss says selling chips in China is Trump’s call – as it happened
Time to recap.Amazon is leading the charge in the US stock market today, with its shares surging by about 11% after its third quarter earnings beat expectations last night.The tech giant reported a 20% surge in sales at its cloud computing division, Amazon Web Services, to $33bn thanks to demand for computing power for artificial intelligence.In the UK, the tinned tuna maker Princes Group has kicked off a float with a valuation of nearly £1.2bn in a boost for the London stock market
OpenAI thought to be preparing for $1tn stock market float
OpenAI is reportedly gearing up for a stock market listing valuing the company at $1tn (£760bn) as soon as next year, in what would be one of the biggest ever initial public offerings.The developer behind the hit AI chatbot ChatGPT is considering whether to file for an IPO as soon as the second half of 2026, according to Reuters, which cited people familiar with the matter. The company is thought to be looking to raise at least $60bn.A stock market float would give OpenAI another route to raising cash, supporting ambitions by the chief executive, Sam Altman, to splash trillions of dollars on building datacentres and other forms of infrastructure needed for the rapid buildout of its chatbots.During a staff livestream on Tuesday, Altman was reported to have said: “I think it’s fair to say it [an IPO] is the most likely path for us, given the capital needs that we’ll have
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Google’s third-generation folding phone promises to be more durable than all others as the first with full water and dust resistance while also packing lots of advanced AI and an adaptable set of cameras.The Guardian’s journalism is independent. We will earn a commission if you buy something through an affiliate link. Learn more.The Pixel 10 Pro Fold builds on last year’s excellent 9 Pro Fold by doing away with gears in the hinge along its spine allowing it to deal with dust, which has been the achilles heel of all foldable phones until now, gumming up the works in a way that just isn’t a problem for regular slab phones
Wallabies firing again in time for England clash after return to free-running DNA
If only Henry Slade had managed to stop Ben Donaldson getting that offload away, if only Ollie Sleightholme had been able to make that wrap-up tackle on Len Ikitau, if only Marcus Smith was able to catch Max Jorgensen. But Slade didn’t, Sleightholme couldn’t, Smith wasn’t, and Jorgensen scored in the corner. This time last year the Wallabies beat England 42-37, their first victory against them at Twickenham in nine years, and it was, the players will tell you themselves, the moment when everything changed. “This game last year was a big turning point for us as a group,” says the Australia captain, Harry Wilson. “It really made us believe that on our day we can beat anybody in the world
Women’s tennis thriving on the court as season wraps but WTA must catch up
The final weeks of the women’s tennis season showcased one last twist in the furious race to determine the qualifiers for the WTA Finals. Elena Rybakina, the 2022 Wimbledon champion, finally caught fire after a year of near misses, bulldozing through her opponents to win a title in Ningbo, China that solidified her spot in Riyadh among the eight best players in the world.Just as significant as Rybakina’s qualification, though, was its consequences for the player she usurped. Mirra Andreeva, the 18-year-old prodigy who won WTA 1000 titles in Dubai and Indian Wells this year, had seemed like a sure bet to qualify in singles for the finals. Her failure to do so underscores the fact that this year has been the toughest and most competitive women’s tennis season in years
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