UK Economics Update Real economy won't escape the bank lending slowdown It has been suggested that UK banks can deleverage by scaling back their lending to financial institutions, leaving lending to UK households and firms largely unaffected. However, that does not mean... 9th February 2009 · 1 min read
UK Economics Update House price falls to exceed 35% The Nationwide and Halifax indices show that house prices are now almost 20% below their peak, meaning that there is still some way to go before our forecast of a 35% peak-to-trough fall is delivered... 6th February 2009 · 1 min read
UK Economics Update House price falls to exceed 35% The Nationwide and Halifax indices show that house prices are now almost 20% below their peak, meaning that there is still some way to go before our forecast of a 35% peak-to-trough fall is delivered... 6th February 2009 · 1 min read
UK Economics Update Still heading for zero Today’s cut in interest rates to just 1% confirmed that, for now at least, the Monetary Policy Committee remains focused on getting the cost of money as low as possible. We still expect rates to drop... 5th February 2009 · 1 min read
UK Economics Update Still heading for zero Today’s cut in interest rates to just 1% confirmed that, for now at least, the Monetary Policy Committee remains focused on getting the cost of money as low as possible. We still expect rates to drop... 5th February 2009 · 1 min read
UK Economics Update A bad bank isn't the answer either Chancellor Alistair Darling told the Treasury Select Committee yesterday that he is keeping open the option of creating a so-called “bad bank”, through which the Government would buy toxic assets from... 4th February 2009 · 1 min read
UK Economics Update Mass destruction of household wealth to hit spending Recent suggestions that a recovery in real income growth as inflation drops will prevent a major downturn in household spending would seem to overlook the damaging impact of the recent sharp falls in... 2nd February 2009 · 1 min read
UK Economics Update Rate cuts still positive for consumer spending The steep cuts in the rates banks pay on households’ savings have led some to conclude that further interest rate cuts are not just of little use, but are actually counterproductive. Interest rate... 22nd January 2009 · 1 min read
UK Economics Update Rate cuts still positive for consumer spending The steep cuts in the rates banks pay on households’ savings have led some to conclude that further interest rate cuts are not just of little use, but are actually counterproductive. Interest rate... 22nd January 2009 · 1 min read
UK Economics Update Even this may not be enough to get banks lending The raft of further measures to support the banks is a significant step. It is clear that the Government has realised that the banking system will not start functioning properly again without more... 19th January 2009 · 1 min read
UK Economics Update Zero interest rates to squeeze bank profits This week’s Bank of England interest rates data confirmed that banks have so far taken advantage of the cuts in official interest rates to boost their profit margins by cutting savings rates more... 14th January 2009 · 1 min read
UK Economics Update Christmas not as bad as feared, but still bad Many of the retailers’ trading statements have been coming in at the better end of expectations, suggesting that Christmas on the high street was not quite as bad as feared. But if the latest BRC... 13th January 2009 · 1 min read
UK Economics Update Christmas not as bad as feared, but still bad Many of the retailers’ trading statements have been coming in at the better end of expectations, suggesting that Christmas on the high street was not quite as bad as feared. But if the latest BRC... 13th January 2009 · 1 min read
UK Economics Update Discount retailers to remain relative winners Discount and value retailers have proved to be the relative winners during this consumer spending slowdown, as households have traded down to buying cheaper goods. What’s more, they could benefit... 9th January 2009 · 1 min read
UK Economics Update Discount retailers to remain relative winners Discount and value retailers have proved to be the relative winners during this consumer spending slowdown, as households have traded down to buying cheaper goods. What’s more, they could benefit... 9th January 2009 · 1 min read
UK Economics Update Another step towards zero Today’s cut in interest rates to record low levels confirms that, for now at least, monetary policy remains focused on reducing the cost of money. We still expect rates to get down to zero, or very... 8th January 2009 · 1 min read
