Category Archives: UK Inflation Prospects and Issues
Recession fears increase as bond yields appear to be signalling a double-dip
Whilst the volatility and at times panic which was a feature of last week has died down somewhat there are still signals in financial markets which if not flashing red are flashing amber. One of them is a regular topic … Read More
“MPC-ometer” suggests further dovish shift
The August MPC minutes confirm that the Committee has shifted to an easing bias, as predicted by the “MPC-ometer” and signalled by last week’s Inflation Report. A post two weeks ago noted that the MPC-ometer forecast was “consistent with Weale … Read More
Merkel/Sarkozy and the Swiss National Bank disappoint and it’s time to have democracy at the Bank of England
Yesterday saw yet another emergency summit in the Euro zone this time a meeting between the French President and the German Chancellor. It surprises me that they feel that they can make decisions on behalf of fifteen other supposedly democratic … Read More
UK inflation rises again and there is more to come in the pipeline from institutionalised inflation
Today has opened with what has been something of a shock to a post credit crunch economic certainty. German economic growth was nothing like a locomotive in the second quarter of this year and dropped substantially only just avoiding zero. … Read More
We have got used to low or zero interest rates well welcome to the prospect of negative ones
Something rather epoch making happened yesterday and it was in a world often ignored by the main stream media. This world is the one of short-term interest rates where we have over the period of the credit crunch become increasingly … Read More
UK Inflation Report confirms easing bias
The Federal Reserve yesterday gave markets a strong steer that official interest rates will remain at rock-bottom levels for a further two years. Despite the Governor downplaying the suggestion, the Monetary Policy Committee has delivered a similar message in the … Read More
The logical flaws with more Quantitative Easing and why instead I would raise interest-rates today
Today is central bank day with meetings at the Bank of England, the Bank of Japan and the European Central Bank. With the weakening world economy there is much for them to consider and I think that it is the … Read More
Fear of another worldwide recession has sent UK bond interest-rates to fifty year lows
After discussing the impact of the main currency move of 2011 the rally of the Swiss Franc and its impact on banks around Europe and mortgage borrowers in Eastwern Europe the obvious question was whether there would be an official response. … Read More
European Council President Van Rompuy’s “fire brigade” looks like it might be needed soon
After discussing the UK’s rate of economic growth on Tuesday or perhaps I should say lack of economic growth I have some further thoughts for you on the subject. Firstly care is always needed with flash estimates and if anything … Read More
UK economic growth was affected by cold weather now it is affected by warm weather too!
Yesterday was a day where the new proposed deal for Greece and her debts started to show signs of problems. For example the yield on Greece’s government bonds began to edge higher again with her three year yield rising by … Read More
