UK made a growth announcement for Q4 yesterday after giving the signals of exiting the expansionary monetary, fiscal policies and low interest rates on 10th November.
US had initiated the early growth announcement in Q3 and ended up with an annualised 2.8% actual expansion. The difference between the two announcements is the time where US’s was two weeks early but UK’s is five.
Just the day before, the holding company of Dubai World, which has broad real estate investments in US & UK, asked for a six month extension – until 10th May 2010 - from its creditors, on repaying its $59bn of debt. The announcement is timely to give the markets the confidence that the global world is strong enough to deal with this.
Friday 27 November 2009
Tuesday 10 November 2009
EXIT FROM QUANTITATIVE EASING
UK contracted by 0.4% in Q3 and gave signals of gradually starting to exit quantitative easing by the relatively smaller £25bn further injection into economy, which is believed to be the last portion of a £200bn sum.
Lower interest rate is also expected to change the movement in upwards direction from mid 2010 onwards and a figure of 2% at the end of 2010 from the current level of 0.5%.
Is UK about to close a chapter of:
Expansionary monetary policy
+Expansionary fiscal policy
+Interest rates near zero?
2010 will be an interesting year to find out.
Lower interest rate is also expected to change the movement in upwards direction from mid 2010 onwards and a figure of 2% at the end of 2010 from the current level of 0.5%.
Is UK about to close a chapter of:
Expansionary monetary policy
+Expansionary fiscal policy
+Interest rates near zero?
2010 will be an interesting year to find out.
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