Our monthly economic review is intended to provide background to recent developments in investment markets as well as to give an indication of how some key issues could impact in the future.
Overview
BOE: OUTLOOK ‘UNUSUALLY UNCERTAIN’
The Bank of England (BoE) has expressed growing confidence that a near-term recovery is gathering pace, although policymakers appear split over the country’s longer-term economic prospects.
SURPRISE FALL IN INFLATION
Lower prices for clothing have triggered an unexpected decline in the UK’s headline rate of inflation, although most economists still expect price pressures to intensify during the coming months.
MARKETS
Major global indices closed March in positive territory as recovery hopes continue. In the UK, the vaccine rollout continues at pace and the unlocking roadmap is progressing.
RETAILER OPTIMISM RISING
Official statistics show that retail sales staged a partial recovery in February, while more recent survey data has revealed a muted sense of optimism amongst retailers.
BORROWING HITS FEBRUARY HIGH
The latest public sector finance statistics show borrowing remains at record levels as the government continues to spend vast sums supporting the economy through the pandemic.