Economic Review – April 2022

IMF cuts growth forecast The International Monetary Fund (IMF) has warned that economic damage from the Ukraine conflict will contribute to a significant slowdown in the global economy with the UK set to be amongst the hardest hit. In its latest assessment of world economic prospects, the IMF said the war in Ukraine is driving … Continue reading “Economic Review – April 2022”

Economic Review – March 2022

Bank Rate raised again Last month, the Bank of England (BoE) sanctioned a further increase in its benchmark interest rate as inflation continues to surge significantly ahead of the Bank’s target level.  Following a meeting held in mid-March, the BoE’s nine-member Monetary Policy Committee (MPC) voted by an 8-1 majority to raise Bank Rate from … Continue reading “Economic Review – March 2022”

Inflationary pressures continue to build

Macroeconomic and geopolitical worries: January was a challenging month for UK investors who had to contend with intensifying inflationary pressures alongside the prospect of higher UK and US interest rates and the possibility of a Russian invasion of Ukraine. Over January as a whole, the FTSE 100 Index rose by 1.1%, while the FTSE 250 … Continue reading “Inflationary pressures continue to build”

Economic Review – January 2022

Economy regains pre-pandemic size The UK economy grew strongly in November to move beyond its pre-COVID level, with increasing momentum recorded across all industry sectors prior to the arrival of the Omicron variant. Data released by the Office for National Statistics (ONS) revealed that the economy grew by 0.9% in November. This was much stronger … Continue reading “Economic Review – January 2022”

Economic Review – November 2021

Inflationary pressures mount Official statistics show the UK headline rate of inflation now stands at a 10-year high, with surveys pointing to further upward pressure as firms continue to report rapidly-rising cost burdens. Data released last month by the Office for National Statistics (ONS) revealed that the Consumer Prices Index (CPI) 12-month rate – which … Continue reading “Economic Review – November 2021”

Economic Review October 2021

OBR forecasts stronger growth The Office for Budget Responsibility (OBR) has upgraded its UK economic growth forecast and is now predicting the economy will return to its pre-pandemic level six months earlier than previously expected. Chancellor Rishi Sunak unveiled the independent forecaster’s revised projections during his Budget statement delivered to the House of Commons on … Continue reading “Economic Review October 2021”

Economic Review September 2021

Upgrade to UK GDP growth The Office for National Statistics (ONS) has revised UK economic growth for Q2 2021 to 5.5% from an original estimate of 4.8%. The UK’s level of GDP is now 3.3% below where it was pre-pandemic in Q4 2019, revised from the previous estimate of 4.4% below. Other ONS data indicates … Continue reading “Economic Review September 2021”

Economic Review July 2021

UK growth forecast upgraded The International Monetary Fund (IMF) has sharply increased this year’s growth forecast for the UK, although recent data does suggest the country’s strong economic rebound has begun to slow down. In its latest assessment of global economic prospects, the IMF highlighted a worrying divergence in fortunes between rich and poor nations, … Continue reading “Economic Review July 2021”

Economic Review June 2021

MPC maintains monetary stance Following its latest meeting held on 22 June, the Monetary Policy Committee (MPC) judged that the existing monetary stance remains appropriate, despite inflation rising above the Bank of England’s target level. Data released last month by the Office for National Statistics (ONS) showed the Consumer Prices Index (CPI) 12-month rate – … Continue reading “Economic Review June 2021”

Economic Review May 2021

BoE upgrades growth forecast The Bank of England (BoE) has significantly increased its 2021 growth forecast, as survey evidence continues to highlight a strong economic rebound, fuelled by the easing of lockdown restrictions and rapid vaccine rollout. In early May, the BoE revealed its latest predictions for the UK economy, which included a growth forecast … Continue reading “Economic Review May 2021”