Seven days in the Square Mile

The Bank of England was expected to raise interest rates for the first time in a decade, after a knife-edge decision. In its latest monthly poll, two-thirds of the economists polled by Reuters (46 out of 64) forecast the Bank would raise rates by 0.25 points from their current 0.25% low. But it was by no means a given: the Monetary Policy Committee has been divided over the issue for months. Despite-better-than-expected growth figures (GDP expanded by 0.4% in Q3), some members still fear the economy is too fragile to withstand a hike. ECB president, Mario Draghi, confounded monetary hawks by extending the ECB’S stimulus programme until at least next September. The price of Bitcoin surged past $6,400, setting yet another record, on news that a US derivatives exchange, CME Group, plans to sell futures contracts for the digital currency, allowing investors to trade Bitcoin in the same way as gold, oil and other assets. The oil price hit a two-year high, with Brent crude rising above $61/barrel reflecting optimism in the industry that Opec’s supply cuts are finally kicking in. Ryanair said it expected to make record annual profits, despite disruptions leading to the cancellation of 20,000 flights, after posting profits of s1.29bn for the six months to September. HSBC reported a third consecutive quarter of revenue growth: the bank’s $100bn bet on Asia appears to be bearing fruit.