On this point, Charles Hepworth, investment director at GAM, pointed out that if the Bank was to go it alone as the sole hiker hiker in a world of global implicit currency manipulation, it would run the risk of critically harming the UK’s export-orientated economy through unwelcome currency appreciation.
“The unbalanced nature of the UK recovery since the financial crisis remains a concern to BoE policy makers, and how they address it is the age-old problem,” he said.
“The latest initial Q3 UK GDP print was a little disappointing and just below market estimates. The manufacturing sector is limping in and out of recession and construction has slowed the most since 2012 (albeit from medium-term highs).”
On a more upbeat note, he pointed to continuing growth of 0.7% from the service sector, which makes up the bulk of the UK economy at near to 80%.
“A bifurcated and unbalanced picture emerges of the UK economic recovery, with some good and bad areas.”
