31 May 2022 - UK economy stalling rapidly

Beyond Currency - A podcast by CurrencyTransfer

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It is considered likely that the Government will need to provide a second round of support, as the cost-of-living crisis is expected to continue well into 2023. A survey conducted by Citibank has shown that the expectation is that inflation will remain above 6% for at least another year. With a rise in the energy cap confirmed for October, they could easily be another in early 2023 taking the average family’s bill above £3,500. The end of the low interest rate, low inflation era is well and truly over. Savers will face the dilemma of making sure that their investments are now able to keep up with inflation. Although interest rates will rise and stay at levels not seen for a considerable time, they will remain below the level of inflation. Overall, the housing market will also suffer with capital gains hard to come by as mortgage rates rise, encouraging homeowners to stay put and consider other options. Beyond Currency Market Commentary: Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.