Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

Citi: Outlook for U.K. Economy Deteriorating

Economy Sep 20, 2022 15:00
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Vuk Valcic / SOPA Images/Sipa US via Reuters Connect

By Scott Kanowsky 

Investing.com -- The outlook for the British economy is deteriorating, but a series of potential policy measures from prime minister Liz Truss will help limit the damage, according to analysts at Citi.

In a note released on Tuesday, a research team at the bank said they expect the U.K. to slide into a recession in the fall and already sky-high inflation to spike even further.

However, Truss' proposed £180B fiscal package, which includes energy price caps and tax cuts, will keep a possible downturn to the -1 to -1.5 percentage point range.

Meanwhile, the U.K.'s consumer price index - a key measure of nationwide inflation - is predicted to peak at 11.7% in January. If there were no policy changes, Citi warned, CPI could climb to as high as 17.4%. Price growth is also seen returning to the Bank of England's 2% target in the second half of 2024.

Citi added that the new policies would most likely be funded by purchases of U.K. sovereign debt, which would place pressure upward on bond yields and downward on the pound.

Citi: Outlook for U.K. Economy Deteriorating
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email