Capital Economics

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UK Economics Update

Short and timely commentaries on economic or market issues and events.

Sample - How will "splendid isolation" affect the UK?

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Articles
What would a Greek exit mean for gilts?Zigzag year to mask weak underlying trendRegional Monitor (May)What would a Grexit mean for the UK?QE3 likely later this yearMonetary Indicators Monitor (Apr.)Is the austerity backlash spreading to the UK?Is the austerity backlash spreading to the UK?Are the official GDP figures too gloomy?Will borrowing respond to the recovery as the OBR hopes?
Regional Monitor (Apr.)Shale gas will transform the UK energy market (eventually)More QE in May still in the balanceMonetary Indicators Monitor (Mar.)Is government spending falling?UK banks still heavily exposed to the euro-zoneDroughts could slow fall in inflationRegional Monitor (Mar.)100 year gilt issue underlines UK safe-haven statusConsensus wrong in thinking MPC done with QE
0.5% rates - 3 years down, another 3 to go?Focus on oil prices neglects wider commodity pictureMonetary Indicators Monitor (Feb.)ECB reduces risk of UK credit crunch, for nowUK Economics Update - Consumers in a sweet spotPPI payments don’t change consumer spending outlookRegional Monitor (Feb.)Euro-zone recession to hit UK exports soonHigher inflation has made the public finances worseProject Merlin has not got credit flowing again
Extra £50bn unlikely to be the last of QEMight UK interest rates turn negative?Monetary Indicators Monitor (Jan.)Why haven’t UK interest rates fallen as far as elsewhere?Osborne’s hidden windfallHow would a European Tobin Tax affect the UK?Regional Monitor (Jan.)More QE likely next monthMonetary Indicators Monitor (Dec.)Another GBP18bn of fiscal tightening due in 2012
Regional Monitor (Nov.)How will "splendid isolation" affect the UK?More QE possible as soon as JanuaryIs the Chancellor right to take the credit for low gilt yields?FSR highlights growing risk of credit crunchGrowth prospects worsen as euro-zone break-up nearsLittle cause for cheer on Northern Rock saleRegional Monitor (Oct.)MPC unlikely to pause for longMonetary Indicators Monitor (Oct.)
Euro crisis to tip the UK back into recessionRegional Monitor (Sep.)QE2 won't eliminate recession risksMonetary Indicators Monitor (Sep.)Growth forecasts revised down; recession risks risingThe privatised utilities are one route to higher investmentRegional Monitor (Aug.)Case for more QE strengtheningMonetary Indicators Monitor (Aug.)Overseas examples suggest VAT cuts costly and ineffectual
Encouraging private sector investment should be part of any Plan BRegional Monitor (Jul.)What consumers need most is lower commodity pricesBounce in UK equities unlikely to continueStock market turmoil increases double dip risksStruggling recovery needs low interest ratesFour reasons why gilt yields will stay lowMonetary Indicators Monitor (Jul.)Which measure of employment is right?Extra QE more likely than a rate rise
Monetary Indicators Monitor (Jun.)Low rates needed to get recovery back on trackPlan B worries underline low interest rate outlookFringes of UK to be worst affected by fiscal squeezeMonetary Indicators Monitor (May)Has the manufacturing recovery run out of steam?Bulk of fiscal squeeze yet to comeCase for a rate hike weakeningPay settlements provide little cause for concernMonetary Indicators Monitor (Apr.)
Are the trade figures better than they look?Weak economic news could yet stave off a rate hikeNext wave of fiscal tightening hits householdsMonetary Indicators Monitor (Mar.)UK Budget Checklist 2011Weak economic news could yet stave off a rate hikeHow worrying is the rise in companies' price expectations?Monetary Indicators Monitor (Feb.)A strong recovery needs faster money growthHow would a rate rise affect confidence?
Fears of rising pay settlements overdoneFunding problems to keep lid on bank lendingMPC should hold its nerveProject Merlin no magic fix for bank lendingIs the MPC acting asymmetrically?How hard would a rate rise hit households?Monetary Indicators Monitor (Jan.)Fears of stagflation overdoneOil prices another brake on the economic recoveryMPC not panicking yet
Will the MPC be panicked into raising rates?VAT inflation effects shouldn't panic the MPCA tough year ahead for consumersMonetary Indicators Monitor (Dec.)2011 to be the year of QE2Can stockbuilding keep the recovery going?OBR sounds a cautious noteMonetary Indicators Monitor (Nov.)What does the Irish crisis mean for the UK?Fragile consumer sentiment points to spending slowdown
QE2 still likely as recovery fadesMonetary Indicators Monitor (Oct.)Construction recovery built on fragile foundationsSpending Review spells out the painLow company failures keep a lid on redundanciesEdging closer to more stimulusMonetary Indicators Monitor (Sep.)What else can the MPC buy?Is employment really rising that much?Imports check net trade boost
Food price rises shouldn’t prompt policy changesQE2 being readied for launchSterling rally may not be over"Plan B" is to bank on the MPCIs there any point doing more QE?Pension funds vulnerable to renewed economic slowdownMonetary Indicators Monitor (Aug.)Signs of slowdown keep rates on holdMonetary Indicators Monitor (Jul.)No quick fix for bank lending
Bank privatisations unlikely to support the recoveryHow can the Government get banks to lend?Case for near-term hike fadingMonetary Indicators Monitor (Jun.)Banks still in no position to lend much moreBudget squeeze on household finances to weigh on house pricesUK Budget ChecklistWhat if the emergency Budget raises VAT?OBR forecasts do not point to a soft BudgetRising inflation unlikely to scare MPC into rate hikes
UK faces a tougher task than Canada to cut deficitMonetary Indicators Monitor (May)Spending cuts just the tip of the icebergOBR details underline likelihood of tax hikesOBR could prompt bigger budget tax hikesTax bargaining just a sideshow to the great squeezeFiscal uncertainty keeps MPC on holdEconomy should not scupper the dealHow will sterling markets fare after the election?UK election ushers in the Great Squeeze