UK Budget: No Fiscal Consolidation, but Looser Money Ahead
We expect little change in UK fiscal policy in Wednesday’s budget. Instead the Chancellor George Osborne may try to nudge the Bank of England towards more aggressive monetary easing, putting further pressure on the pound.
read moreUK Equities Reach Inflation Tipping Point
Jon Ruff and Patrick Rudden As UK inflation surges ahead, equity investors should be concerned. With yields on inflation-linked bonds at extreme lows, we think real assets offer a better way to combat the risk of rising prices.
read moreUK Threat to Exit EU: Much Ado About Nothing
In a speech last week, British Prime Minister David Cameron raised the possibility that the UK might push the “nuclear button” and leave the European Union. We think both the threat and consequences of such a move have been exaggerated.
read moreBank of England Still Aiming at the Wrong Target
The UK is celebrating a near three-year low in consumer price inflation, but we think the Bank of England (BOE) should be more worried about the role that money and credit play in the inflation process.
read moreCollapse in UK Investment Income Is Cause for Concern
A collapse in direct investment income was the main factor behind the UK’s record second-quarter current account deficit. It’s too early to know whether this represents a permanent shift. But, if it does, it would make rebalancing the economy more difficult and have important implications for the pound.
read moreArchives by Month:
- December 2012 (16)
- December 2011 (12)
- November 2012 (8)
- November 2011 (14)
- October 2012 (20)
- October 2011 (17)
- September 2012 (10)
- August 2012 (17)
- July 2012 (15)
- June 2012 (16)
- May 2013 (2)
- May 2012 (13)
- April 2013 (10)
- April 2012 (8)
- March 2013 (23)
- March 2012 (12)
- February 2013 (19)
- February 2012 (10)
- January 2013 (20)
- January 2012 (11)