The U.K.'s Economic Outlook Is Getting Rosier The U.K.'s Economic Outlook Is Getting Rosier
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  1. #1

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    Default The U.K.'s Economic Outlook Is Getting Rosier

    (Taken from Bloomberg)

    Bank of England officials aren’t the only ones feeling a bit more bullish about the U.K. economy.

    The Centre for Economics and Business Research upgraded its outlook for the nation’s economy Monday, citing a pickup in manufacturing and a view that the worst of the consumer-spending squeeze has passed. The group now expects U.K. growth of 1.6 percent this year and 1.4 percent in 2018, an increase from 1.3 percent and 1.2 percent, previously.

    The revision comes after BOE policy makers said last week that they’re headed toward raising interest rates for the first time in more than a decade, noting that while Brexit still poses a risk, data since their last decision points to a “slightly stronger picture than anticipated.”

    Gertjan Vlieghe, regarded as one of the more dovish members of the Monetary Policy Committee, doubled down a day later, saying that data suggested “we are approaching the moment when bank rate may need to rise.”

    By the end of the week, the pound had climbed about 3 percent, markets were fully pricing in a rate increase by February a year earlier than previously seen and Barclays, Deutsche Bank and Scotiabank were among those forecasting a hike in November.

    “U.K. economic growth has unquestionably slowed from the rates seen throughout much of 2016,” said Nina Skero, head of macroeconomics at the CEBR. “Many have mistaken recent headwinds for a full-blown storm.”

    One of the major drags on growth in the first half was a slowdown in consumer spending, as faster inflation and subdued wage increases squeezed Britons’ pockets -- pressures which the CEBR say should now start to ease. The group also expects a “comprehensive interim deal with the EU,” boosting the economy beyond 2018, although it does admit that a sustained decline in net migration could cause “serious damage.”

  2. #2

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    No responses? I would have thought that Brexiters would have jumped on this thread.
    Looks like reality's hit even the dumbest of them.
    Hard Brexit now!
    #prayfornodeal

  3. #3

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    Quote Originally Posted by sasguru View Post
    No responses? I would have thought that Brexiters would have jumped on this thread.
    Looks like reality's hit even the dumbest of them.
    Does it matter how people voted?

    And people are really bored of this Brexit nonsense. Especially on CUK.

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    growing economy + inflation + low interest rates = great time to buy to let

    Wonder how that housing crisis will pan out?
    If Theresa May could get over the middle England nimby problem then we could solve that issue as well.
    See You Next Tuesday

  5. #5

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    Quote Originally Posted by Lance View Post
    growing economy + inflation + low interest rates = great time to buy to let

    Wonder how that housing crisis will pan out?
    If Theresa May could get over the middle England nimby problem then we could solve that issue as well.
    Wage inflation?
    merely at clientco for the entertainment

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    Quote Originally Posted by eek View Post
    Wage inflation?
    Hopefully benefits will be frozen too.

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    Quote Originally Posted by eek View Post
    Wage inflation?
    meh. Not my problem. No sign of it happening though.
    See You Next Tuesday

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    Quote Originally Posted by Lance View Post
    meh. Not my problem. No sign of it happening though.
    It is if you are planning to go into BTL. How do you expect sell at a profit unless houses prices to continue to rise... and for house prices to rise people need income to be able to borrow more money....
    merely at clientco for the entertainment

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    Quote Originally Posted by eek View Post
    It is if you are planning to go into BTL. How do you expect sell at a profit unless houses prices to continue to rise... and for house prices to rise people need income to be able to borrow more money....
    you're thinking too short term. Over 10 years it'll be fine.

    Anyway. I'm not into BTL. I'd rather have a nicer pad and enjoy the investment without the hassle of scratters.
    I was just observing the impact of inflation aiding the repayments on your leveraged asset.
    See You Next Tuesday

  10. #10

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    Quote Originally Posted by eek View Post
    It is if you are planning to go into BTL. How do you expect sell at a profit unless houses prices to continue to rise... and for house prices to rise people need income to be able to borrow more money....
    Or attract lots more overseas buyers....

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