Interest and exchange rate forecast - January 2013
Change of year, change of tune? Rarely have expectations of the New Year been so low. We start 2013 with most forecasters expecting a mild contraction in Europe, anaemic growth of 1% in the UK, and fiscal shenanigins holding the US back to growth of around 2%.
11 January 2013
Rarely have expectations of the New Year been so low. We start 2013 with most forecasters expecting a mild contraction in Europe, anaemic growth of 1% in the UK, and fiscal shenanigins holding the US back to growth of around 2%. Political decisions in the US are looking increasingly European, with hopes of all-encompassing solutions being repeatedly dashed. The US is happy to put yet more trust in quantitative easing, but central bankers in the UK look likely to cast their net wider in search of further stimulus.
* IER-jan2013.pdf
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