Interest and exchange rate forecast
Ready, steady, taper
10 January 2014
The US Federal Reserve gave markets an early Christmas present with its decision in December to begin 'tapering' its quantitative easing programme. With last year's government spending cuts out of the way, the US appears primed for a year of strong economic growth, which should support the dollar against sterling.
The big news at home is the significant improvement in the labour market. As the unemployment rate edges ever closer to the Bank of England's 7% forward guidance threshold, we have brought forward our timing of the first interest rate rise. Meanwhile, across the Channel, the European Central Bank remains ready to act should the inflationary environment deteriorate much further.
interest-and-exchange-rate-forecast.pdf
Download the full forecast (PDF 67KB)
Posted In
Latest news
RBS has today committed to helping 2.5 million people in the UK each year to improve their financial capability.
RBS has executed a £1.1bn securitisation deal with Macquarie Infrastructure Debt Investment Solutions (MIDIS), which will allow the bank to recycle capital and increase lending to the sustainable or renewable energy sectors.
RBS has today announced a new £1 billion in funding through NatWest to support female entrepreneurs in the UK to scale and grow – the largest intervention by a UK lender focused specifically on female-led businesses.
We’re now NatWest Group
Come and visit us for all our latest news, insights and everything NatWest Group.