Could politics structurally alter the economic backdrop?

With 5 July having marked ten years since the Bank of England (BoE) last raised UK interest rates, we assess the state of the economy and its prospects in light of recent political developments. Although the UK economy has shown resilience since last year’s Brexit referendum, its growth rate decelerated in the first quarter of … Continue reading “Could politics structurally alter the economic backdrop?”

Trump in the White House – all expectations out the window

The election of Donald Trump as the next US president has been a game-changer thus far for fixed income markets, upending all expectations of what will happen next. One thing is for sure, though: Trump’s policies will have a major, far-reaching impact on bond markets. Trump has promised two broad changes – greater fiscal stimulus … Continue reading “Trump in the White House – all expectations out the window”

Infrastructure spending: What’s not to like?

Is it time for an infrastructure push? The International Monetary Fund (IMF) thinks so, and we agree. Public infrastructure investment not only provides a short-term lift to demand; it also helps economies to grow faster without hitting capacity constraints. And to these two benefits, we would add a third: increased infrastructure spending could help relieve … Continue reading “Infrastructure spending: What’s not to like?”