October 21, 2024 at 03:38PM
The BOE’s Megan Greene wrote a column in the FT.
UK consumption recovery lags behind other developed economies
UK savings rate high at 10% vs 5% in the US
Three factors damping UK consumption:
Precautionary savings due to cost of living crisis
Restrictive monetary policy
Interest rate changes impacting household incomes
Discretionary spending remains below pre-pandemic levels
Higher interest rates incentivize savings, delay purchases
Household income from interest on savings has increased
Full impact of higher rates on mortgages not yet felt
Cable is at the lows of the day at 1.3004 but that’s being driven by broad US dollar strength.
This article was written by Adam Button at www.forexlive.com.
BOE’s Greene: Cautious and gradual approch to easing is appropriate