UK Economics Update Recapitalisation unlikely to revitalise bank lending With banks’ balance sheets under pressure, UK bank lending is set to rise more slowly, if not fall outright. This will have significant adverse effects on the UK economy, which may already be in... 13th October 2008 · 1 min read
UK Economics Update Has the housing market outlook changed? What a tumultuous few weeks! Policymakers around the world have stepped in to bail out the banking system, hopefully averting full-scale financial system meltdown, and UK interest rates have been cut... 10th October 2008 · 1 min read
UK Economics Update The fiscal implications of the banking measures The recently announced Government measures to support the UK banking sector may have little immediate effect on the public finances. But the downturn in the wider economy is already set to push public... 10th October 2008 · 1 min read
UK Economics Update Finally, some light at the end of the mortgage market tunnel At last, some rare good news for the housing market. Together, the bank recapitalisation plan and the 0.5% cut in official policy rates suggest that policy makers have now realised that drastic action... 8th October 2008 · 1 min read
UK Economics Update Finally, some light at the end of the mortgage market tunnel At last, some rare good news for the housing market. Together, the bank recapitalisation plan and the 0.5% cut in official policy rates suggest that policy makers have now realised that drastic action... 8th October 2008 · 1 min read
UK Economics Update First step on the path to historically low rates Today’s 50bps cut in UK interest rates, alongside similar moves from a number of other central banks, is likely to mark the start of a phase of aggressive monetary easing. We continue to expect UK... 8th October 2008 · 1 min read
UK Economics Update Bank recapitalisation won’t transform economic outlook The Government’s reported plans to inject additional capital into some of the UK’s largest banks are unlikely to prevent a major slowdown in the growth of bank lending to households and companies from... 7th October 2008 · 1 min read
UK Economics Update Forecast change: UK interest rates heading for 2.5%. Recent developments in the UK and global economies and banking sectors suggest that UK interest rates are going to have to fall even further than we had thought. We now expect rates to fall to 2.5%... 6th October 2008 · 1 min read
UK Economics Update B&B another blow to the fiscal position The nationalisation of Bradford & Bingley is another blow to the government’s already dire fiscal position. It also highlights just how vulnerable banks are to future mortgage losses, which are likely... 29th September 2008 · 1 min read
UK Economics Update Fiscal fears set to deepen Recent figures on the public finances, coupled with growing concerns over the public cost of measures to address the banking crisis, have led to major fears over the UK’s fiscal position. But our... 22nd September 2008 · 1 min read
UK Economics Update King rules out quick fixes Bank of England Governor Mervyn King today underlined the message that there are no quick fixes for the problems in the UK mortgage and housing markets. This supports the view that further sharp falls... 11th September 2008 · 1 min read
UK Economics Update US GSE rescue provides no pointers for the UK The US government’s initially well-received intervention to support the Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac, has prompted debate over the case for similar sort of... 10th September 2008 · 1 min read
UK Economics Update MPC to start cutting soon Lingering inflation concerns kept the Monetary Policy Committee’s finger off the interest rate trigger again today. But it is only a matter of time before it is forced to respond to the rapidly... 4th September 2008 · 1 min read
UK Economics Update MPC to start cutting soon Lingering inflation concerns kept the Monetary Policy Committee’s finger off the interest rate trigger again today. But it is only a matter of time before it is forced to respond to the rapidly... 4th September 2008 · 1 min read
UK Economics Update Government housing measures contain no miracle cure The Government today announced a number of measures designed to “meet current challenges in the housing market”. While some of the measures will help to ease the hardship faced by a few of the... 2nd September 2008 · 1 min read
UK Economics Update Sterling’s tumble won’t stop interest rates falling The pound’s recent sharp fall is good news for the future prospects of the UK’s exporters. But it won’t prevent the Monetary Policy Committee from having to cut interest rates aggressively in response... 2nd September 2008 · 1 min read
