By Greg Smith on Monday, November 22nd, 2021
in Blog, Market Insights
GBP – Bank of England speakers and PMIs A run of positive data has added pressure on the Bank of England to raise interest rates next month. Inflation jumped to a decade high of 4.2% in October, partly due to energy prices. Core inflation, excluding food and energy, also increased to 3.4% with forecasts of […]
By Greg Smith on Monday, November 15th, 2021
in Blog, Market Insights
GBP – All about inflation pressures and consumers This week, the focus in the markets in on current and future inflation pressures. We expect this week’s October inflation report to show another sharp rise. Headline CPI inflation is likely to rise from 3.1% in September to 3.9%. This includes higher energy prices after the price […]
By Vatsal Trivedi on Monday, November 8th, 2021
in Blog, Market Insights, Podcasts
Avoiding hidden or unmanaged currency risk in your business model For many businesses operating internationally, recent political and economic events have highlighted the impact on currency market volatility on their business. How can businesses develop effective financial models that factor in currency risk? Business Perspectives host Greg Smith and special guest Lance Rubin from Model […]
By Greg Smith on Monday, November 8th, 2021
in Blog, Market Insights
GBP – UK rates held after ‘finely balanced’ decision The Bank of England didn’t change UK rates last week, surprising the markets. They did signal an increase “over the coming months”. There was a 7-2 majority to keep rates on hold. Ramsden and Saunders did vote for a 15bp increase to 0.25%. Most rate-setters, however, […]
By Greg Smith on Monday, November 1st, 2021
in Blog, Market Insights
GBP – Bank of England decision closely watched The Bank of England decision on monetary policy is this week. There is plenty of speculation that the BoE will hike interest rates to 0.25%. This is a reaction to the comments that action is required due to the inflationary pressures from BoE Governor Bailey and Chief […]
By Greg Smith on Monday, October 25th, 2021
in Blog, Market Insights
GBP – Autumn Budget expected to be neutral This week, the Autumn Budget and Spending Review will be the main focus. The Office for Budget Responsibility (OBR) will likely increase it’s growth forecast for the year from 4% to closer to the BoE’s 7.25% forecast. Government borrowing was lower for the first half of 2021. […]
By Greg Smith on Monday, October 18th, 2021
in Blog, Market Insights
GBP – Unclear labour market with inflation concerns From recent data, the UK economy seems to have grown more slowly in the third quarter than previously expected. In August, GDP increased by 0.4%, which was better than the fall of 0.1% in July. This was expected, being the first full month without Covid restrictions in […]
By Greg Smith on Monday, October 11th, 2021
in Blog, Market Insights
GBP – GDP and labour market reports This week, August GDP data is likely to show the economy growing at a weaker pace than the first half of the year. In July, the growth rate was the slowest since January at just 0.1%. This slowdown was mainly due to supply constraints. The underlying rate of […]
By Greg Smith on Monday, October 4th, 2021
in Blog, Market Insights
GBP – Sterling wobble despite rate expectations The past week has been volatile again with concerns about rising inflation and weakening growth. They are both linked to supply-side disruptions stemming from the pandemic. Current disruption in UK petrol supply is an example and latest updates on delivery issues will be closely watched. The government’s furlough […]
By Greg Smith on Monday, September 27th, 2021
in Blog, Market Insights
GBP – Policy unchanged but inflation higher for longer Last week, the Bank of England left policy unchanged. The Base Rate remains at 0.1%, but an additional MPC member unexpectedly joined Saunders in voting for an early end to QE. While the majority still favour completing the current £895bn bond-buying programme, Ramsden’s switch to ending […]
