Outside the US and UK - where today's no change decision from the Bank of England left interest rates near 33-year lows beneath inflation - emerging economies are also flirting with sub-zero real rates of interest, Japanese investment bank Nomura's London office notes.
The Bank of England (BoE) continued to maintain its base rate at 0.5 percent, as the economic recovery continues to remain uncertain and financial crisis continues to worsen in the eurozone.
U.K. Chancellor of the Exchequer George Osborne is defending the beleaguered Bank of England (BoE) governor Mervyn King, who has come under fire in recent weeks for allegedly having a lack of political neutrality.
UK factory orders continued to rise in December and the manufacturers expect the output growth to be robust in the next three months due to strengthening demand at home and abroad.
The euro currency might not survive the current sovereign debt crisis and may be in danger of collapse, according to Stephen Nickell, an economist at the independent Office of Budget Responsibility (OBR) member and former Bank of England member.
Among the many juicy tidbits revealed by the recently published Wikileaks documents were Bank of England chief’s Mervyn King’s concerns about Prime Minister David Cameron’s inexperience.
Manufacturing in the eurozone expanded in November at its fastest pace in four months, boosted by strong activity in France and Germany, while manufacturing production in the U.K. touched a 16-year high, according to a survey.
UK economy grew in the third quarter, boosted mainly by a strong increase in exports of goods and services.
UK factory orders rose more than expected in November, but the manufacturers expect the output growth to slow in the next three months.
Retail sales in the U.K. rose by 0.5 percent for the first time in three months during October, according to a report by the Office for National Statistics.
Inflation in the U.K. rose during October, mainly pushed by fuel and lubricant prices, a report by the U.K. Office for National Statistics.
Euro rose across the board and pulled off 1-1/2-month lows against the US dollar and British pound on Friday on news EU leaders reassured the holders of outstanding bonds that they would not be forced to take losses. The day's gains, however, did not prevent the single currency from heading for weekly losses versus the majors as investors are still worried that Ireland may default on its bonds.
The euro dropped across the board on Thursday as weak data from the region showed the crisis-hit EU member countries will continue to pressurize the single currency.
