The UK Treasury’s decision to transfer coupon income from the Bank of England’s Asset Purchase Facility is a step towards ‘fiscal dominance’, where the fiscal authority ultimately gains the upper hand from the central bank and we see monetisation of public sector debts and deficits.
UK’s Action Signals Move Closer to Fiscal Dominance
Posted in Featured, Fiscal Policy, UK on November 27, 2012Sterling’s rally to peter out on rising inflation
Posted in European Economy, UK on May 10, 2012The strength of sterling has been in part due to some safe-haven flows from the Middle East (where sometimes GBP is seen as a preferable safe-haven to the USD or CHF), but this is not the fundamental driver.
UK: From Fixed to Floating; Mortgage Types Highlight Stress Ahead
Posted in UK on April 13, 2012Despite an historic low Bank of England base rate, the spread between the standard variable rate (SVR) for mortgages in the UK and the base rate widened significantly in the aftermath of the financial crisis, and has continued to trend higher.
