You are here: Home - Investing -

UK economy may contract again in Q4

0
Written by:
14/11/2012
UK GDP could shrink in the last quarter, despite moving out of recession in Q3.
UK economy may contract again in Q4

Speaking after the publication of the Bank of England’s’s quarterly inflation report, governor Mervyn King has said the UK economy King said it is “difficult to discern” the true path of GDP and said the UK recovery may start later than previously forecast.

He also pointed to the strength of sterling as a negative factor for the economy, saying a strong pound is undermining competitiveness and may result in a slower recovery.

The governor said the Q3 GDP rise, estimated to be 1% according to the Office for National Statistics, was fuelled by one-off factors, meaning “headline growth is consequently likely to fall back sharply in Q4”.

The Bank has also lowered its GDP estimates for future quarters.

The BoE upped its inflation forecast, citing “unexpectedly large” rises in energy prices, and now expects CPI inflation to fall back to its target a full year later than it forecast in August’s report.

The Bank’s charts suggest CPI will drop to 1.8% in two years’ time.

King added the Bank’s Monetary Policy Committee had not lost faith in the ability of its quantitative easing programme to help the economy.

Sterling fell against the dollar following the governor’s comments, moving to a day low of $1.5862, while the euro rose to the highest level against the pound since 1 November at 80.35p.

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
2224781-switzerland-matterhorn
Swiss tax dodge days are over

UK residents with Swiss bank accounts are being warned that new landmark taxation arrangements are scheduled to come into force...

Close