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BOE
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Written by Administrator
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The BoE was out yesterday with its quarterly inflation report, and Mr. King's turned in an ultra-bearish performance, forecasting that national income would drop by almost 2% on year on year comparisons by Q2 of next year and that the overall economy would shrink as much as 1.3% in 2009. This would mean that BOE rates are likely to eventually fall below 2.00%, meaning a multi-century lows. Yesterday also saw the release of unemployment data that shows the employment situation reaching its worst levels in 11 years. The combination of a very low interest rate outlook on accelerating negative economic indications and renewed trouble in the financial sector has the pound experiencing the most pain in this environment. GBP is now scraping along at a 12-year low on a trade-weighted basis. EURGBP blasted through 0.8200 and posted new highs above 0.8400 before finding resistance. |
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Last Updated ( Thursday, 13 November 2008 18:28 )
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