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
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 Household bad debt on the rise again Household bad debt appears to have embarked on an upward trend at the start of this year, with borrowers starting to buckle under the pressure of the credit crunch. With unemployment now rising, debt... 1st September 2008 · 1 min read
UK Economics Update UK economy to contract in 2009 Recent news on the UK economy, coupled with the growing danger of a fall in bank lending, has left us even more concerned over the likely severity of the economic downturn. We now expect GDP to fall... 26th August 2008 · 1 min read
UK Economics Update Weaker euro-zone economy to dent UK exports The recent weakening in the outlook for the euro-zone economy – the destination for around half of the UK’s exports – suggests that there is a risk that activity in the UK will be even weaker than the... 14th August 2008 · 1 min read
UK Economics Update Sterling's fundamental adjustment has further to go The latest drop in the sterling exchange rate has been largely driven by short-term movements in interest rate expectations. But we see the fall as part of a long overdue adjustment which has... 14th August 2008 · 1 min read
UK Economics Update The dent to the labour market from falling house prices There are a number of ways in which a weakening housing market could affect the labour market adversely, potentially sparking a vicious circle of falling house prices and rising unemployment. 13th August 2008 · 1 min read
