UK Economics

1. UK inflation fell less than expected from 3.4% in February to 3.2% in March. While the rate of inflation has dropped below the US for the first time in two years, traders and economists are now more cautious about the prospect of interest rate cuts.
2. Jeremy Hunt voiced his ambition to shave an additional 2p off national insurance by September in a pre-election mini-budget. This would allow the Conservatives to flaunt that they have halved the tax rate in a single year.
3. The International Monetary Fund (IMF) cautioned Rishi Sunak to take far more drastic measures to control the UK’s public debt, casting doubt on the prime minister’s decision to slash national insurance. The UK was one of four major economies that the IMF identified as “critically needing to take policy action to address fundamental imbalances between spending and revenues” in its Fiscal Monitor release.
4. The UK’s largest water provider, Thames Water, defaulted on some of its debt after investors refused to go ahead with a £500mn equity injection. The government is now faced with a number of emergency measures to save the firm, possibly including renationalisation.

World Economics

1. In March the Bank of Japan raised interest rates for the first time in 17 years, from -0.1% to 0.1%. The recent episode of global inflation has brought an end to the decades of low or negative inflation that have characterised the Japanese economy since the early 1990s.
2. The IMF released new forecast data in April suggesting that the US economy will grow at double the rate of its G7 competitors this year. President Biden, who has struggled to exploit strong growth in the opinion polls, has made new promises to hike tariffs on Chinese imports, including by tripling of tariff on steel and aluminium. 
3. Largely due to strong domestic demand, US inflation remained persistent at 3.5% in March. The Federal Reserve has now dampened expectations for rate cuts, which are unlikely to occur before the Autumn.
4. Ongoing instability in the Middle East, combined with the prospect of new Western sanctions on Iran, have caused the price of oil to rise from around $72 per barrel at the start of the year to $83 in April. Higher oil prices are likely to push up energy and commodity prices around the world.

UK Politics

1. On 5 April senior Tory MP William Wragg admitted to having leaked other MP’s contact details, after being blackmailed on the gay dating app Grindr. Several MPs have since reported receiving explicit photos from the blackmailers in what has been described as a serious breach of parliamentary security. 
2. The SNP government in Scotland made a U-turn on the 18 April, abandoning its commitment to cut GHG emissions by 75% by 2030. Scottish minister Mairi McAllan described the 2030 target as “out of reach” in light of “cuts and UK backtracking”.
3. Greater Manchester Police have launched an investigation into deputy Labour leader Angela Rayner, over allegations of council tax fraud and electoral law violations. Starmer has stood by his deputy, accusing Rishi Sunak of “smearing a working-class woman” on Wednesday. 
4. On 19 April Rishi Sunak announced new plans to strip GPs of the ability to sign people off work. Mr Sunak has claimed that he intends to end the UK’s “sick note culture”, but the British Medical Association has criticised him for his “hostile rhetoric”.

World Politics

1. A suspected Israeli strike on the Iranian consulate in Syria on 1 April was followed by a retaliatory attack by Iran on Israel on 13 April. The Israeli National Security Minister has urged the Israeli military to “go berserk”, sparking fears of an escalation of tensions in the already war-ridden region.
2. On 15 April, a criminal trial against former President Donald Trump commenced. Mr Trump, who is the likely Republican nominee for this year’s November presidential election, faces 34 felony charges of falsifying business records relating to payments made to adult film actress Stormy Daniels.
3. After months of stalling, the US House of Representatives agreed on a critical $61 billion Ukraine and Israel aid package. The package, which was approved by 210 Democrats and 101 Republicans, has been seen as one which will boost President Biden’s re-election campaign later this year. 
4. From 19 April to 1 June, Indians will elect a new parliament and prime minister in the world’s largest democratic exercise in history. Prime Minister Modi, who is seeking a third successive term in office, has been largely backed by pollsters to triumph once again.

Written by Edgar Brown, Shreyas Veturi and Keshav Hajarnavis