UK Economics Update More QE likely next month The MPC’s decision to leave policy unchanged today was as expected, given that the last of the £75bn of asset purchases decided upon in October is still being completed. However, next month should see... 12th January 2012 · 1 min read
UK Economics Update Monetary Indicators Monitor (Dec.) The boost to the narrow money supply from QE2 is yet to feed through into a more meaningful pickup in the broader monetary aggregates. 4th January 2012 · 1 min read
UK Economics Update Another GBP18bn of fiscal tightening due in 2012 France is spearheading a drive to push ahead with a “Tobin tax” on financial transactions in Europe, even though the UK has ruled out taking part. If a comprehensive tax were introduced, the potential... 3rd January 2012 · 1 min read
UK Economics Update Regional Monitor (Nov.) The new annual regional data suggest that the widely-held view that London’s economy has fared better than other regions of the UK over the last couple of years is unfounded. 14th December 2011 · 1 min read
UK Economics Update How will "splendid isolation" affect the UK? David Cameron’s decision to pull away from Europe has called into question the UK’s entire future in the European Union. But when it comes to the UK’s near-term growth prospects, the debate over... 12th December 2011 · 1 min read
UK Economics Update More QE possible as soon as January Given that the £75bn of asset purchases announced in October has not been completed yet, today’s decision by the MPC to leave policy unchanged was unsurprising. However, the Committee has sent some... 8th December 2011 · 1 min read
UK Economics Update Is the Chancellor right to take the credit for low gilt yields? The Chancellor has frequently claimed that his commitment to fiscal austerity has earned the UK credibility in financial markets and has been the decisive factor behind the fall in gilt yields. But... 7th December 2011 · 1 min read
UK Economics Update FSR highlights growing risk of credit crunch The Bank of England’s Financial Stability Report (FSR) suggests that a second credit crunch might already be starting to hit the UK. A renewed tightening of credit conditions is just one reason to... 1st December 2011 · 1 min read
UK Economics Update Growth prospects worsen as euro-zone break-up nears David Cameron’s decision to pull away from Europe has called into question the UK’s entire future in the European Union. But when it comes to the UK’s near-term growth prospects, the debate over... 30th November 2011 · 1 min read
UK Economics Update Little cause for cheer on Northern Rock sale The unprofitable sale of Northern Rock should dent any hopes that the Government will be able to sell profitably its remaining stakes in the other nationalised banks in the near future. 17th November 2011 · 1 min read
UK Economics Update Regional Monitor (Oct.) The latest regional activity surveys suggest that the southern regions of the UK have borne the brunt of the economy’s recent weakness. But there are signs that the North’s outperformance will be... 16th November 2011 · 1 min read
UK Economics Update MPC unlikely to pause for long Given that the £75bn of asset purchases announced in October has not been completed yet, today’s decision by the MPC to leave policy unchanged was unsurprising. However, the Committee has sent some... 10th November 2011 · 1 min read
UK Economics Update Monetary Indicators Monitor (Oct.) The pronounced weakness of the latest broad money and lending data suggests that the Monetary Policy Committee (MPC) was right to restart QE in October. However, the MPC seems to be getting less ‘bang... 31st October 2011 · 1 min read
UK Economics Update Euro crisis to tip the UK back into recession The euro-zone debt crisis is likely to have severe adverse effects on the UK economy at a time when domestic contractionary forces are building. We now expect UK GDP growth to slow from about 0.8%... 18th October 2011 · 1 min read
UK Economics Update Regional Monitor (Sep.) The latest regional data suggest that the northern regions of the UK have recently managed to grow at a similar, albeit sluggish, pace to those in the South. However, conditions in the northern labour... 13th October 2011 · 1 min read
UK Economics Update QE2 won't eliminate recession risks The MPC’s decision to re-launch its quantitative easing programme today confirms that the Committee finally recognises that the major threat to the UK is renewed recession, not inflation. But previous... 7th October 2011 · 1 min read
