Economics
Time for another attempt at prediction. Lets see if this is any closer than my last effort
Our interest rates are still at 0 (well, 0.5 splitting hairs but you know what I mean) and don't look like they will move for a while. Despite this, and despite all the money the government has thrown at the problem like VAT cuts, car scrappage and of course the good ol' quantitative easing, our economy aint growing. I suspect it may continue to not grow when most of this stuff is taken away early next year.
So, far from a nice sharp upturn like I previously thought, it looks like this is going to be looooooong. And probably only really come to an end when the USA and Europe have recovered sufficiently that we can devalue our currency and export (both goods and services) our way out of it.
If this comes out true, then there will be inflation and foreign holidays will be rather pricey for a while although if you own a home then you will at least be able to continue to afford the repayments. If you don't then it is truly horrible as these low interest rates will just allow the housing market to keep rising (slowly) and set it up to tank nicely at the first sign of recovery. Oh joy...
Our interest rates are still at 0 (well, 0.5 splitting hairs but you know what I mean) and don't look like they will move for a while. Despite this, and despite all the money the government has thrown at the problem like VAT cuts, car scrappage and of course the good ol' quantitative easing, our economy aint growing. I suspect it may continue to not grow when most of this stuff is taken away early next year.
So, far from a nice sharp upturn like I previously thought, it looks like this is going to be looooooong. And probably only really come to an end when the USA and Europe have recovered sufficiently that we can devalue our currency and export (both goods and services) our way out of it.
If this comes out true, then there will be inflation and foreign holidays will be rather pricey for a while although if you own a home then you will at least be able to continue to afford the repayments. If you don't then it is truly horrible as these low interest rates will just allow the housing market to keep rising (slowly) and set it up to tank nicely at the first sign of recovery. Oh joy...