Though the MPC raised Bank Rate for the third successive meeting, March's minutes revealed a clear change in tone. Growing concerns about the...
United Kingdom | The supply shock continues
Posted by Andrew Goodwin on Mar 11, 2022
The last week has delivered little let-up in the energy price-driven supply shock to the UK economy triggered by Russia's invasion of Ukraine....
United Kingdom | While March rate hike remains on table, tone to be cautious
Posted by Andrew Goodwin on Mar 10, 2022
Surging energy prices have complicated the MPC's March policy decision. On balance, we still think the committee will raise Bank Rate to 0.75%, but a...
United Kingdom | Rising uncertainty set to limit scale of rate hikes
Posted by Andrew Goodwin on Mar 4, 2022
The week’s data showed further evidence of a decent bounce back in activity after the initial emergence of Omicron, and that inflationary pressures...
United Kingdom | Housing market to cool after 2021 boom
Posted by Andrew Goodwin on Mar 2, 2022
We expect the UK housing market to remain stuck in a state of high prices-low transactions. Though price growth should cool, a soft landing is more...
United Kingdom | Russian invasion dents near-term growth outlook
Posted by Andrew Goodwin on Feb 28, 2022
The main impact on the UK economy of Russia’s invasion of Ukraine is likely to be energy prices staying higher for longer. The UK’s energy price cap...
United Kingdom | Dissecting the MPC’s inflation fixation
Posted by Andrew Goodwin on Feb 18, 2022
High inflation in the UK and concerns about the effect of a tight jobs market on wages will likely push the MPC to raise rates to 1.25% by the end of...
United Kingdom | Inflation set to peak higher and remain stickier
Posted by Andrew Goodwin on Feb 14, 2022
We now see UK CPI inflation peaking at 7.5% in April and remaining higher throughout 2022. But inflation should retreat next year, and we see the...
United Kingdom | Data confirms modest hit from Omicron
Posted by Andrew Goodwin on Feb 11, 2022
The net economic effect of Omicron – a blow to social consumption but a boost to health output from testing and vaccinations – resulted in only a...
London monitor | London’s economic growth to slow in 2022 as recovery matures
Posted by Richard Holt on Feb 7, 2022
There are two factors explaining this. Omicron stifled activity in December 2021 and the opening part of the new year, leading us to downgrade our...