Jupiter's Davies: The UK implications of a 'lower for longer' oil price

clock

Despite a slowdown in growth to 0.5% in the third quarter, the UK economy continues to perform well.

Unemployment is now back at levels not seen since before the global financial crisis, while growth in wages (more than 3% in the private sector in the year to August, according to the ONS) and inflation of about zero has translated into strong retail sales. One of the key points remains the timing of interest rate rises, which the market has not had to worry about for a very long time. But we are now reaching a point where the Federal Reserve cannot postpone a hike much longer. The UK domestic economy is at least as strong as the US, so the Bank of England should not be too far behind...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on UK

European-focused investment grade and high yield credit have highest inflows since April 2020.

Fixed income dominates ETF flows in July

Accounted for $32.5bn

clock 08 August 2022 • 2 min read
The bank’s 0.5% hike is the largest increase since it gained independence in 1997.
UK

Bank of England predicts recession as it enacts largest rate hike in 27 years

Inflation peak of 13%

Elliot Gulliver-Needham
clock 04 August 2022 • 2 min read
Total funds under management have fallen on the previous year, down to £1.4trn from June 2021’s £1.5trn.

Every asset class suffers outflows in second worst month on record

Responsible investment holds up

James Baxter-Derrington
clock 04 August 2022 • 2 min read
Trustpilot