The transformation of the British economy in 2013 the envy of the world. In
the previous year, Britain has seen economic growth, starting in 2013,
the rate of growth is quite simple, but they began moving rapidly in the
second quarter of the year thanks to the monetary and financial policy
established by the British Government. And lows in July to current levels, British pound/US dollar by over 9%. And
reflecting the improvement in the British economy and the rise in rates
will, British FTSE index to its highest in 13 years this year, while
bond yields rose to ten years by over 100 points, up 2.97 percent. Unfortunately, this has not been translated to the unprecedented rise in sterling. While
the British Pound rose substantially against the Japanese yen and the
Australian dollar, but it was only small gains against the u.s. dollar
and the New Zealand role. And against the euro,
Swiss franc, Sterling, which was surprising because Britain has grown at
an annual rate of 1.9 percent in the third quarter of the year, while
contracted rate of growth in the euro area by 0.4%. Next
year, we expect to gain momentum in the British economy next year but
will not be the biggest gains against the US dollar but also versus the
major currencies.
Three factors lead the British economy in 2014
-Real estate market
-Banking sector
-Global growth rate
British economic growth will lead the 2014 both real estate and banking sector and the strength of the global economy. The
British Government has done a great job of supporting the mortgage
market this year, with funding for borrowing, procurement assistance
programme. It will help the British Government's
commitment to keep interest rates at a low level to maintain low
mortgage interest, thereby pushing up real estate prices and attract
foreign investment. The British Government
understands that the real estate market is essential to maintain support
for the economy until consumers feel optimistic. After writing off huge amounts of bad debt, the banking sector is expected to record profits and revenues. If
the global economic environment improves, that will promote the
economic recovery and help the UK economy to reach an economic growth
rate of 2.8% is a target level for growth from the Bank of England in
2014, a level higher than the Bank's target for growth in 2013 which was
at 1.6%. And there are areas of interest, such
as slow economic growth in Europe and reducing demand in the region and
the high rate of unemployment which may limit consumer spending. The British Bank has stepped the new year cautiously, maintaining an average economic stimulus as long as possible. .
Under
the leadership of mark Carney, Governor of the Bank of England, the
Bank began a policy of the future extension to keep interest rates low. And
led a revolutionary application of this policy in other parts of the
year, but in Britain, the future extension of the sharp criticism that
the Central Bank has reduced the power of the labour market. In
August, the Bank thinks that the unemployment rate will drop to 7
percent in the second half of the year 2016 and last month blamed the
World Bank forecast a rapid improvement with signs that the unemployment
rate in the third quarter of 2015. Now the
unemployment rate is located away from the 0.4%, this means that you can
easily access to the unemployment rate of the Bank in mid-2014. While
the Central Bank said that the rate of unemployment at 7% would be the
beginning, not a spark, to raise the interest rate, steep unemployment
rate encouraged investors to anticipate that there will be an early
tightening of monetary policy from the Bank of England.
The
announcement was the next Bank of England inflation and expectations
for the future of the British economy, and monetary policy makers will
have to take a very important decision, taking into account two
important, namely maintaining forecast unemployment rate and/or reduce
the requirement to change the monetary policy with the unemployment rate
at 6.5%. It is the key factor on the rate of wage growth. At
present there is a slowdown in wage growth than inflation but that wage
rate acceleration, you'll feel the British bank that is more pressure
to raise interest rates. Unlike the fed, which
was his first step is to reduce the asset purchases, the British bank
that his first action would be to raise the interest rate. Current projections indicate that the Bank of England might raise interest rates by 50 basis points by the end of 2015. And
the economic data is improving and the rate of wage growth, investors
will be looking to take the British Bank early action more
