UK Economics Update Overseas inflation more reassuring for the UK than it looks The UK has not been alone in seeing inflation rise recently, prompting the Monetary Policy Committee (MPC) to suggest that common factors may therefore be keeping inflation high globally. However, a... 18th February 2010 · 1 min read
UK Economics Update Wage costs pose no lasting inflation threat While the recent rise in consumer price inflation has been driven by temporary factors such as the VAT hike and higher energy prices, one potentially more persistent influence is the rapid growth of... 17th February 2010 · 1 min read
UK Economics Update MPC not tightening policy yet It has been suggested that central banks are already effectively tightening policy by withdrawing the emergency liquidity provided to the financial system during the depths of the crisis. But in the... 15th February 2010 · 1 min read
UK Economics Update Greece’s problems are ours too Greece is the word in the financial markets at the moment. But aside from the potential for weak puns like that (“Greek tragedy”, “acropolis now” etc.), what do recent developments there mean for the... 12th February 2010 · 1 min read
UK Economics Update Surveys point to significant amount of spare capacity In yesterday’s Inflation Report, the Bank of England highlighted the uncertainties surrounding the amount of spare capacity in the economy. Indeed, the recent stubbornness of UK inflation has led to... 11th February 2010 · 1 min read
UK Economics Update VAT’s the way they like it Further changes to VAT are an appealing option for improving the fiscal position. But by pushing inflation even higher and perhaps limiting the scope for offsetting monetary support, excessive... 9th February 2010 · 1 min read
UK Economics Update VAT’s the way they like it Further changes to VAT are an appealing option for improving the fiscal position. But by pushing inflation even higher and perhaps limiting the scope for offsetting monetary support, excessive... 9th February 2010 · 1 min read
UK Economics Update Is it the stocks or flows of QE that matter? The MPC’s decision to pause its quantitative easing (QE) programme has intensified the debate about whether it is the stocks or flows of asset purchases that matter most for the economy. The answer is... 8th February 2010 · 1 min read
UK Economics Update Just how damaging would a hung parliament be? There are worries that a hung parliament could lead to higher interest rates and a lower credit rating – a nasty scenario for sterling assets. But with monetary policy set to remain extremely loose... 4th February 2010 · 1 min read
UK Economics Update Just how damaging would a hung parliament be? There are worries that a hung parliament could lead to higher interest rates and a lower credit rating – a nasty scenario for sterling assets. But with monetary policy set to remain extremely loose... 4th February 2010 · 1 min read
UK Economics Update MPC halts QE for now, but may have more work to do The Monetary Policy Committee’s decision not to extend its quantitative easing programme further this month does not necessarily mark the end of its extraordinary efforts to support the economy. And... 4th February 2010 · 1 min read
UK Economics Update MPC halts QE for now, but may have more work to do The Monetary Policy Committee’s decision not to extend its quantitative easing programme further this month does not necessarily mark the end of its extraordinary efforts to support the economy. And... 4th February 2010 · 1 min read
UK Economics Update How much has the car scrappage scheme boosted growth? We estimate that the car scrappage scheme has boosted UK GDP by just 0.1% or so per quarter. Nonetheless, the end of the scheme could still dent growth if consumers brought forward spending to take... 4th February 2010 · 1 min read
UK Economics Update How much has the car scrappage scheme boosted growth? We estimate that the car scrappage scheme has boosted UK GDP by just 0.1% or so per quarter. Nonetheless, the end of the scheme could still dent growth if consumers brought forward spending to take... 4th February 2010 · 1 min read
UK Economics Update Monetary Indicators Monitor (Jan.) It has now been almost a year since the Bank of England started its quantitative easing (QE) programme of asset purchases, yet both the broad money supply and bank lending are still barely rising. 1st February 2010 · 1 min read
UK Economics Update Will a “double-dip” sink Mr Brown? Q4’s disappointing GDP figures have raised fresh questions over the possibility of a “double-dip” in the economy and the implications for the timing and outcome of the forthcoming general election. 28th January 2010 · 1 min read
