Cazenove's Jeffrey: Global slowdown is on the horizon

Group's CIO says QE has led to decline in domestic demand and could spark downturn.

A decline in domestic demand brought on by quantatitive easing could result in a global slowdown, Cazenove’s CIO has warned. Richard Jeffrey said  soaring prices, which have far outpaced average earnings growth, has left consumption looking vulnerable to a correction, which could hit economic growth. “In the UK, final consumption in 2010 rose by only 0.6%. This year’s rise could be as little as 0.2%,” he said. Jeffrey added UK consumers and their counterparts around the world are being taxed by moves from central banks – including the Bank of England and Federal Reserve – to introd...