Sterling’s rally to peter out on rising inflation

The Mexican peso is the only major currency to have appreciated against sterling this year (and then only by less than 1%). The trade-weighted sterling is the highest it has been since late 2008, when the currency was in the midst of its epochal devaluation. The...

UK: From Fixed to Floating; Mortgage Types Highlight Stress Ahead

Despite an historic low Bank of England base rate, the spread between the standard variable rate (SVR) for mortgages in the UK and the base rate widened significantly in the aftermath of the financial crisis, and has continued to trend higher. Fixed rate deals in the...

UK Inflation Set to Start Rising Again

UK inflation has been falling, driven mainly by a fall in consumer demand, and last year’s VAT increase falling out of the year-on-year comparisons.  Looking under the bonnet, however, reveals a disconnect between inflation of ‘necessary’ and ‘discretionary’ goods. ...