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You searched for: Content Type Policy Brief Remove constraint Content Type: Policy Brief Publishing Institution Oxford Economics Remove constraint Publishing Institution: Oxford Economics Political Geography United Kingdom Remove constraint Political Geography: United Kingdom Publication Year within 25 Years Remove constraint Publication Year: within 25 Years Topic Financial Crisis Remove constraint Topic: Financial Crisis
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  • Publication Date: 08-2013
  • Content Type: Policy Brief
  • Institution: Oxford Economics
  • Abstract: Since the US Federal Reserve signalled that a turn in the interest rate cycle may be on the horizon, UK and to a lesser extent Eurozone interest rates have tracked US rates higher. But the UK and Eurozone economies are less well placed than the US to cope with higher interest rates. Simulations carried out on our Global Economic Model show that higher rates would be particularly harmful to the UK economy's embryonic recovery. In an attempt to stem the rise in interest rates, the Bank of England and the ECB have introduce forward guidance but with little, if any, success. Markets do not seem convinced by the Bank of England's commitment to forward guidance and are testing its resolve. It seems likely that over time both central banks may have to strengthen their forward guidance, in the case of the Bank of England by augmenting it with further quantitative easing.
  • Topic: Economics, Markets, Monetary Policy, Financial Crisis
  • Political Geography: United States, United Kingdom, Europe
  • Publication Date: 06-2013
  • Content Type: Policy Brief
  • Institution: Oxford Economics
  • Abstract: The housing market is recovering, according to recent price and activity data. Post-crisis price corrections were smaller in the UK than in the US and much of Europe, and demand is now being bolstered by the government's Funding for Lending and Help to Buy schemes. This has given rise to some worries that the UK is in danger of inflating another house price bubble. While housing supply is very tight, we are not convinced that these schemes will have enough impact on demand to cause prices to take off.
  • Topic: Economics, Markets, Monetary Policy, Financial Crisis
  • Political Geography: United States, United Kingdom, Europe