Inflation should return to its 2% target within the next two years, the Bank of England said on Wednesday, but labour productivity remains the key uncertainty, as it downgraded its forecast for UK GDP growth from 2.9% for 2015, to 2.5%.
China’s interest rate cut announced over the weekend is widely expected to be just the latest move in a monetary loosening process that could ultimately end in quantitative easing.
The United Kingdom gross domestic product numbers published yesterday provided a timely reminder that headline GDP figures are at best a rough guide to the health of an economy and at worst deceptive.
With US valuations higher than they have been for many years and the QE-fuelled run in European assets, investors are once more turning to emerging markets, putting the BRIC economies back under the spotlight.
The United Kingdom’s economic growth has been revised up by the Office for National Statistics the day after parliament was dissolved for the formal start of the election campaign.
Royal London Asset Managements Ian Kernohan says despite new GDP numbers from the ONS RLAM still expects interest rates to rise very gradually in 2015.
The United States economy sent out another signal of strength today as GDP was confirmed to be
The UK, in stark contrast to Eurozone heavyweights France and Germany, received good economic news once again as its GDP growth was revised up to 3.2% year on year.
According to Royal Londons Ian Kernohan, although asset allocation currently still favours equities over bonds there are a number of pressures now acting against that view.
The United States Bureau of Economic Analysis has said the US economy grew a surprisingly strong 4% year-on-year during the second quarter.
A revised GDP forecast shines a light on UK economy recovery, but weak productivity performance shadows improved figures.
ONS says growth a fraction under forecasts
