UK economy: steady, healthy

Article Abstract:

Nikko's Simon Briscoe sees the United Kingdom economy as stable with inflation and growth at some 3%. Growth will be stronger in 2nd half 1997 due to windfalls to consumers from building societies. Interest rates are likely to rise by more than expected due to the independence of the Bank of England in setting rates and a mini-Budget which was not as fiscally tight as some commentators had hoped for. Pound sterling is strong for a number of reasons including higher interest rates. Nikko sees windfalls as likely to have a limited impact on inflation.

---

False hope of sterling bears

Article Abstract:

United Kingdom interest rates are likely to be cut in Nov 1998, and could drop to 5% by 2000. This may not bring about a drop in the value of pound sterling since the markets already expect interest rates to drop, and the prospect of the UK joining European monetary union will tend to prevent the pound from falling far. Interest rates are unlikely to fall far since this could lead to a drop in the value of the pound which would push up inflation. The US dollar may also rise, leading to a rise in the value of pound sterling.

---

Patience

Article Abstract:

Pound sterling will drop in value gradually and after interest rates have dropped, according to Barclays Capital. Slower services sector growth and lack of pressure from wage inflation mean that rates are likely to have peaked. Interest rates are higher in the UK than in mainland Europe so the pound will remain strong. Predictions of rate falls will nor lead to a lower pound, bu lower interest rates are likely by year-end 1998 as economic growth slows and inflationary pressures ease.

Similar abstracts:

• Abstracts: Rate dilemma. UK economy: rate rise pressure. Ken and Eddie ticked off
• Abstracts: High income on the up. Out of the ordinary. Taking income from capital
• Abstracts: New lords for the royals. Full of East End promise. No longer a dock too far
• Abstracts: No time to lose nerve. Clash of the titans. Small but lucratively formed?
• Abstracts: The persuasiveness of audit evidence: the case of accounting policy decisions. An examination of the descriptive validity of the belief-adjustment model and alternative attitudes to evidence in auditing

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.