Bank of England February 2016 Inflation Report Summary

Bank of England February 2016 Inflation Report Summary , accountancy advice, UK tax advice, free tax advice, free company advice, changing from sole trader to limited company, how do I change from sole trader to limited company, limited company advice, forming a limited company, changing from sole trader, sole trader advice
This report is courtesy of the Black Country Chamber of Commerce.

Bank of England February Report significant points:

  • There has been a softening of UK growth forecasts from 2.5% to 2.2%
  • Spare capacity in UK is 0.3% of GDP and unemployment is below 5%, which leaves little room for manoeuvre within the current downturn – this may lead to price pressure
  • A corporate cash balances are high (lessons learned from the recession) and because lending from the non-banking sector has grown, any issues within the financial sector are not expected to have a catastrophic effect on a globally resilient UK
  • Global growth outlooks are fuelling the 7% drop in equity; growth expectations amongst emerging economies have dropped significantly as a result of the drop in commodity prices (Less investment and bank lending tightening). Growth expectations in advanced economies has risen (where 75% of our exports go to)
  • Oversupply is the reason why the oil prices are dropping. Some commentators are expecting prices to drop to $10 a barrel
  • Productivity in the UK is rising but more business investment is required to consolidate

Click here to view the full Bank of England February 2016 Inflation Report.

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