Back
4 Jan 2016
UK: On course to a mid-year rate hike – Deutsche Bank
FXStreet (Delhi) – Research Team at Deutsche Bank, suggests that the outlook for UK economy remains for GDP growth to slow to trend over 2016 and 2017.
Key Quotes
“In our view, government spending will slow due to ongoing austerity and we expect investment and exports to be held back by the EU referendum and a fragile external backdrop/strong currency, respectively. Growth will likely be weighted towards consumption. Inflation should rise and undermine purchasing power, but only slowly.”
“We expect interest rates to rise too, and household finances are more highly geared than ever. However, the slowdown in private consumption growth should be more muted thanks to robust employment growth and the capacity for households to reduce the savings rate.”
Key Quotes
“In our view, government spending will slow due to ongoing austerity and we expect investment and exports to be held back by the EU referendum and a fragile external backdrop/strong currency, respectively. Growth will likely be weighted towards consumption. Inflation should rise and undermine purchasing power, but only slowly.”
“We expect interest rates to rise too, and household finances are more highly geared than ever. However, the slowdown in private consumption growth should be more muted thanks to robust employment growth and the capacity for households to reduce the savings rate.”