Business
BREAKING: Interest Rate, Increase to 15-Year High – Bank Of England
The Bank of England on Thursday lifted its key interest rate to the highest level since the 2008 financial crisis, noting inflation remained stubbornly high but that the economy would now avoid recession this year.
The BoE hiked the rate by a quarter-point to 4.5 percent — its 12th increase in a row with UK annual inflation stuck above 10 percent, fuelling a cost-of-living crisis across Britain.
Global policymakers are battling elevated inflation caused largely by runaway energy bills following last year’s invasion of Ukraine by major oil and gas producer Russia.
Following a regular policy meeting, the BoE warned of “considerable uncertainties” on when UK inflation would return to its two-percent target, as soaring food prices offset sharp drops to energy costs.
At the same time, the central bank made a record upgrade to its British GDP forecast, adding there would be only a small impact from recent turmoil in the commercial banking sector.
“Six months ago, we were expecting a shallow but long recession,” BoE governor Andrew Bailey told a press conference.
“Since then, energy prices have fallen substantially and economic activity is holding up much better than expected.”
– ‘Modest but positive’ growth –
Bailey said the UK would this year experience “modest but positive economic growth and a much smaller increase in unemployment.
“We think inflation will fall quite sharply over the coming months,” he added.
Official data Friday is expected to show the UK economy grew during the first quarter of this year after narrowly avoiding recession in the last three months of 2022.
The rate decision comes one week after UK Prime Minister Rishi Sunak’s Conservative government suffered a drubbing in local elections, as voters gave their verdict over rampant living costs despite government efforts to partly subsidise energy bills.
The nation has been plagued by strikes as high inflation erodes the value of wages. Train staff will walk out again on Friday following months of industrial action across the private and public sectors.
The latest BoE hike is set to deepen the crunch in living standards as retail banks pass on the increase, resulting in higher repayments on loans, including mortgages.
At the same time, those who can afford to save will benefit for increased fixed returns on investments.
“Although it is good news that the Bank of England is no longer forecasting recession, today’s interest rate rise will obviously be very disappointing for families with mortgages,” said British finance minister Jeremy Hunt.
– Highest inflation in G7 –
Thursday’s news took British borrowing costs to a level last seen in October 2008, before rates were slashed during the global financial crisis.
The BoE has ramped up borrowing costs from a record-low of 0.1 percent in December 2021.
Its latest hike came one week after the European Central Bank and the Federal Reserve implemented quarter-point rate increases as inflationary pressures ease only slightly in the eurozone and the United States.
UK annual inflation stood at 10.1 percent in March, the highest level in the Group of Seven richest nations.
Sunak and the BoE blame the high level in part on rises to pay and have urged employers to show restraint.
BoE chief economist Huw Pill recently stated that Britons need “to accept that they’re worse off and stop trying to maintain their real spending power by bidding up prices via higher wages”.
AFP
Business
Woman demands $250,000 from Promasidor over son’s death at factory
A few hours after reporting to the factory, Patrick reportedly fell from a rooftop into a warehouse and died.
• Patrick Ogbu
One Mrs Susan Ogbu has filed a $250,000 lawsuit against Promasidor Nigeria Ltd.; its parent company, Promasidor Holdings; and several others over the death of her 26-year-old son, Patrick Ogbu.
The suit, filed at the National Industrial Court in Lagos, alleged gross negligence and unsafe work practices.
Other defendants named in the case are Mr Dapo Omolade (operating under the Dapo Omolade Empowerment Initiatives), Hybrid Group Limited, Hybrid HSE Limited, Bohlar Integrated Services, and the Minister of Labour and Employment.
In the suit marked NICN/LA/361/2024, Mrs. Ogbu, through her counsel David Kupolati, is demanding N300 million in compensation, and N150 million in general damages from the defendants, citing wrongful death due to negligence.
She is also seeking a court order for a 21 per cent annual interest on the judgment sum until it is fully paid, along with N5 million, in legal costs.
Patrick Ogbu joined the HSE trainee program operated by Omolade and Hybrid Group on April 1, 2024, under an offer letter dated March 4, 2024.
The program promised technical skills training in health and safety and offered a monthly stipend of N65,000.
According to the claimant, her son, Patrick was, on August 9, 2024 assigned to Promasidor Nigeria’s factory through an arrangement between Bohlar Integrated Services and Promasidor.
A few hours after reporting to the factory, Patrick reportedly fell from a rooftop into a warehouse and died.
“Sadly a few hours after the claimant’s son left home to resume work at the Promasidor (fifth defendant) project site, she received the sad news that her son had fallen from the factory rooftop into the warehouse and died almost immediately.
“The unfortunate, sad and premature death of her son arose due to the gross negligence and unsafe practices of Dapo Omolade, Hybrid Group, Hybrid HSE Limited, Bohlar Integrated Services and Promasidor Nigeria,” she said.
His mother blamed the accident on the “gross negligence and unsafe work conditions” at the site, attributing responsibility to all the defendants.
Mrs Ogbu is also requesting that the court compel the Minister of Labour and Employment to investigate the operations of the DOME initiative and impose sanctions on all responsible parties.
She further seeks an order for a full health and safety audit of Promasidor’s factories and a formal inquiry into the company’s labour practices across Lagos and Ogun states.
Source: PUNCH
Commercial banks in Nigeria, including Guaranty Trust Bank customers will commence payment of N6 for every SMS transaction alert starting tomorrow.
This is coming on the heels of the increase in telecommunications rates by telecommunications providers following a nod by the federal government.
The SMS charges were increased by 50% to N6 from the previous N4 per message.
Various banks had sent emails to their customers to inform them of the current change.
An email from Guaranty Trust Bank Limited with the heading “Increase in SMS Transaction Alert Fee” read:
“Dear Valued Customer, Please be informed that effective Thursday, May 1, 2025, the SMS transaction alert fee will increase from N4 to N6 per message.
This adjustment is due to a recent increase in telecom rates as communicated by the telecommunication service providers.
“Kindly note that transaction alerts are important and help you keep track and stay in control of activities on your account.
“SMS alerts to international phone numbers are subject to higher charges.”
Business
NNPC Sacks 200 Mele Kyari’s Loyalists
Those departing immediately are Bala Wunti, former chief of National Petroleum Investment Management Services (NAPIMS), and Ibrahim Onoja, managing director of the Kaduna Refinery.
The Nigerian National Petroleum Company (NNPC) Ltd has appointed Maryam Idrisu as Managing Director of NNPC Trading and Obioma Abangwu as Chief Liaison Officer for Board Matters.
This followed the reported sack of over 200 staff, including loyalists of the former Group Chief Executive Officer (GCEO), Mele Kyari.
BusinessDay reported that those departing immediately are Bala Wunti, former chief of National Petroleum Investment Management Services (NAPIMS), and Ibrahim Onoja, managing director of the Kaduna Refinery.
Also asked to leave is Lawal Sade, the Chief Compliance Officer and former Managing Director of NNPC Trading.
It was gathered that over 200 employees have been impacted, marking the beginning of what may be a series of staff changes.
Woman demands $250,000 from Promasidor over son’s death at factory
BREAKING: Bank customers to pay N6 per SMS transaction alert starting tomorrow
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