Tagged with: uk economy
suhasinisakhare.com
The UK's Office of Budget Statistics came out with a report on March 23. The Telegraph has today published a n analytical piece on this report. Some content is worth quoting directly: As a result of higher than expected inflation, living standards will fall for longer than previously anticipated, public borrowing will end up higher, and real terms cuts in public spending will have to be deeper. T...
suhasinisakhare.com
The BBC has published an analysis that notes "nagging doubt" to be the theme of Davos 2011. It's well deserved doubt. Most people start off by expressing doubt about the Euro Zone, I firmly believe the Euro Zone has turned the corner. If troubled spots like Greece continue troubling, the severity will decrease with each passing month. The European turnaround would likely be one of the big stories...
suhasinisakhare.com
Yesterday, news broke that the UK economy actually contracted by .5% in the last quarter of 2010. George Osborne blamed the snow. Ed Balls blamed George Osborne. Yesterday, economists feared stagflation in the UK. Today, Nauriel Roubini, the economist who predicted the 2007 crash, suggested there are chances of a double dip in the UK. Back in December 2009, before it became clear just how much of...
suhasinisakhare.com
Experts have started predicting that interest rates in the UK will rise before June. Inflation remains a concern. Much of this inflation has been fed by the oil price bubble. Much of the oil price bubble has been fed by QE II and by American exports . If rates in the UK are raised before June, property prices will start to "go south", as one blogger writing in the Telegraph today so eloquently pu...
suhasinisakhare.com
Merrill Lynch has issued a warning that inflation numbers, resulting higher interest rates, and quantitative tightening, will make UK bonds too expensive over the medium term . The UK's follows the US up and down, and UK inflation will therefore, likely cool down within a quarter or 2. So the logic outlined by Merrill Lynch, does not exactly hold. However, sovereign bond holders invest in the eco...
1 year ago
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