Dear Members,
Please find below a link to the detailed report.
It basically says that they are cautiously optimistic about the second half of 2024, with a return to growth.
I have not seen the Error Margins recently, they used to be very wide.
It is interesting to read what they have to say, and there are some insights into specific markets.
It is important that the BoE paints a rosy picture to keep the ratings agencies happy, because of the interest on our frankly scandalous National Debt.
I feel that the figures should be read in this context.
Also I have seen recently that BlackRock, the biggest Investment Management firm by far are looking at the UK Housing Market. They clearly see excess demand over supply. This is good for Bank stress testing, not good at all for renters, and first time buyers. Let’s see if a Labour Government steps in. If left to the free market, it looks as if house prices can only rise, barring very high interest rates. It would seem sensible for our society if our children could afford to live near their parents, perhaps that should take preference over an extra % return in someone’s portfolio.
Is inflation under control? Are we in a wage price spiral? Wages are up by 5.7% against claimed inflation of 2%. That is probably why the BoE is not yet ready to drop interest rates.
Take care everybody
Kr
Nick
Agents’ summary of business conditions – 2024 Q2 | Bank of England
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