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
UK Economics Update Bank of England has already begun quantitative easing In line with other central banks, the Bank of England has recently begun a policy of quantitative easing (QE). Admittedly, the Bank has taken action to limit the increase in the monetary base. And it... 18th December 2008 · 1 min read
UK Economics Update UK interest rates heading for zero The recent dreadful news on the UK economy and the fall in US interest rates very close to zero have convinced us that UK interest rates are set to fall even further than we had previously thought... 18th December 2008 · 1 min read
UK Economics Update UK interest rates heading for zero The recent dreadful news on the UK economy and the fall in US interest rates very close to zero have convinced us that UK interest rates are set to fall even further than we had previously thought... 18th December 2008 · 1 min read
UK Economics Update Can UK interest rates fall to zero? The reduction in the US Fed funds target rate to between zero and 0.25% has raised the question of whether interest rates in other economies, including the UK, can fall as far. The answer would seem... 17th December 2008 · 1 min read
UK Economics Update Interest rates heading to zero? Today’s further 1% fall in UK interest rates to match their lowest ever levels underlines the seriousness of the situation facing the economy. But there is more to do and there is now a very real... 4th December 2008 · 1 min read
UK Economics Update Interest rates heading to zero? Today’s further 1% fall in UK interest rates to match their lowest ever levels underlines the seriousness of the situation facing the economy. But there is more to do and there is now a very real... 4th December 2008 · 1 min read
UK Economics Update Car sales continue to plummet The number of new car registrations plummeted in November at the fastest rate yet. The automotive sector is shaping up to be one of the hardest hit areas of the economy during this recession. 4th December 2008 · 1 min read
UK Economics Update Will Christmas bring relief for the high street? Tomorrow’s CBI Distributive Trades Survey will give one of the first indications from the retail sector as a whole as to how the pre-Christmas spending season is shaping up. The failure of Woolworths... 27th November 2008 · 1 min read
UK Economics Update Rise in short-dated bond yields unlikely to be sustained The rise in short-dated bond yields in recent days appears to be a response to the higher than expected borrowing projections revealed in Monday’s Pre-Budget Report (PBR). But it is unlikely to be... 27th November 2008 · 1 min read
UK Economics Update Will Christmas bring relief for the high street? Tomorrow’s CBI Distributive Trades Survey will give one of the first indications from the retail sector as a whole as to how the pre-Christmas spending season is shaping up. The failure of Woolworths... 27th November 2008 · 1 min read
UK Economics Update King highlights bank lending risks In today’s testimony to the Treasury Committee, the Monetary Policy Committee (MPC) gave little indication of whether it thinks that the fiscal stimulus announced yesterday has reduced the need for... 25th November 2008 · 1 min read
UK Economics Update VAT cut won't prevent household spending slump The temporary cut in Value-Added Tax (VAT) set to be announced in this afternoon’s Pre-Budget Report is a bold, headline-grabbing measure which could put extra money into households’ pockets almost... 24th November 2008 · 1 min read
UK Economics Update Falling immigration won't stop unemployment rising The latest migration-related releases from the Home Office and Office for National Statistics provided further evidence that migration to the UK is slowing sharply. However, we doubt that this will... 19th November 2008 · 1 min read
UK Economics Update Falling immigration won't stop unemployment rising The latest migration-related releases from the Home Office and Office for National Statistics provided further evidence that migration to the UK is slowing sharply. However, we doubt that this will... 19th November 2008 · 1 min read
UK Economics Update Fiscal boost and lower pound won't do the MPC's job The prospect of a fiscal boost in the forthcoming Pre-Budget Report and the recent sharp fall in the sterling exchange rate are both positive developments for the UK economy. But they will not prevent... 17th November 2008 · 1 min read
