Slowdown under control?
Article Abstract:
United Kingdom economic growth appears to be higher than is consistent with inflation at a stable level. The Monetary Policy Committe (MPC) of the Bank of England aims to achieve stable inflation, but there are risks involved since the economy may see a sharper drop in growth than expected. Interest rates were not changed in Jul 1998, but they may still rise again. More relaxed fiscal policy could also affect economic growth. Forecasts are for growth averaging from 1% to 1.5% in 2nd half 1998 and 1999, and for interest rates and the value of pound sterling to drop in 1999.
Publication Name: Barclays Economic Review
Subject: Business, international
ISSN: 0956-5574
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
How serious a problem
Article Abstract:
United Kingdom inflation expectations have risen slightly between Mar and Jun 1998. The average forecast for a year ahead has risen to 3.5% from 3.4% in Jun 1998. The forecast could have been worse since data published had shown a 4% rise in the retail price index for April 1998, but the results do not fit easily with a government target of 2.5% inflation. The Bank of Engalnd is concerned that wage negotiations could be affected by the 4.4% forecast of the general public, higher than the average forecast for the five specialist groups surveyed.
Publication Name: Barclays Economic Review
Subject: Business, international
ISSN: 0956-5574
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: UK business investment: sector trends. Long-term plans, short-term problem. Windfall gains: what will the beneficiaries do?
- Abstracts: Analysts say Jaya Tiasa has investment allure. Asian currencies slide on doubts over recoveries. The tortoise among tigers, the Philippines advances
- Abstracts: Border wars: inward investment. The long honeymoon
- Abstracts: Winning over the window shoppers. Something for nothing. King of the jungle
- Abstracts: Vietnam woos back investors. Seoul marches to a new leader. South Korea: the fightback begins