UK Economics Update Higher inflation has made the public finances worse Today’s data from the FSA showed that banks are picking up the pace at which they are compensating consumers for mis-sold Payment Protection Insurance (PPI). While the compensation will provide a... 14th February 2012 · 1 min read
UK Economics Update Project Merlin has not got credit flowing again The major UK banks have more or less met the Project Merlin lending targets set by the Government. But these targets were fairly meaningless in the first place and there are plenty of reasons to... 13th February 2012 · 1 min read
UK Economics Update Extra £50bn unlikely to be the last of QE The MPC’s decision to increase its asset purchase programme by another £50bn was as expected and confirmed that the recent improvement in the economic data has not alleviated the need for policymakers... 9th February 2012 · 1 min read
UK Economics Update Might UK interest rates turn negative? The major UK banks have more or less met the Project Merlin lending targets set by the Government. But these targets were fairly meaningless in the first place and there are plenty of reasons to... 2nd February 2012 · 1 min read
UK Economics Update Monetary Indicators Monitor (Jan.) The continued weakness of broad money and lending growth bolsters the case for the MPC to announce another round of quantitative easing (QE) at February’s meeting. 31st January 2012 · 1 min read
UK Economics Update Why haven’t UK interest rates fallen as far as elsewhere? During the financial crisis, many countries cut official interest rates to below the 0.5% level seen in the UK. If they can reach this level elsewhere, we do not see why they cannot do so in the UK... 30th January 2012 · 1 min read
UK Economics Update Osborne’s hidden windfall Quantitative easing (QE) is not only helping to reduce gilt yields for the Government, but it is also lowering the amount that the Government is paying out in debt interest and therefore helping to... 24th January 2012 · 1 min read
UK Economics Update How would a European Tobin Tax affect the UK? France is spearheading a drive to push ahead with a “Tobin tax” on financial transactions in Europe, even though the UK has ruled out taking part. If a comprehensive tax were introduced, the potential... 23rd January 2012 · 1 min read
UK Economics Update Regional Monitor (Jan.) There are obviously major uncertainties about what form Scottish independence might take if it happens, including what currency Scotland might use and what responsibility for RBS she might take on... 19th January 2012 · 1 min read
UK Economics Update More QE likely next month The MPC’s decision to leave policy unchanged today was as expected, given that the last of the £75bn of asset purchases decided upon in October is still being completed. However, next month should see... 12th January 2012 · 1 min read
UK Economics Update Monetary Indicators Monitor (Dec.) The boost to the narrow money supply from QE2 is yet to feed through into a more meaningful pickup in the broader monetary aggregates. 4th January 2012 · 1 min read
UK Economics Update Another GBP18bn of fiscal tightening due in 2012 France is spearheading a drive to push ahead with a “Tobin tax” on financial transactions in Europe, even though the UK has ruled out taking part. If a comprehensive tax were introduced, the potential... 3rd January 2012 · 1 min read
UK Economics Update Regional Monitor (Nov.) The new annual regional data suggest that the widely-held view that London’s economy has fared better than other regions of the UK over the last couple of years is unfounded. 14th December 2011 · 1 min read
UK Economics Update How will "splendid isolation" affect the UK? David Cameron’s decision to pull away from Europe has called into question the UK’s entire future in the European Union. But when it comes to the UK’s near-term growth prospects, the debate over... 12th December 2011 · 1 min read
UK Economics Update More QE possible as soon as January Given that the £75bn of asset purchases announced in October has not been completed yet, today’s decision by the MPC to leave policy unchanged was unsurprising. However, the Committee has sent some... 8th December 2011 · 1 min read
UK Economics Update Is the Chancellor right to take the credit for low gilt yields? The Chancellor has frequently claimed that his commitment to fiscal austerity has earned the UK credibility in financial markets and has been the decisive factor behind the fall in gilt yields. But... 7th December 2011 · 1 min read
