Protect Recovery's Green Shoots: Maggie Pagano
"Don't Hinder Recovery: Bank Of England Should Maintain Rates," Advises Maggie Pagano
Maggie Pagano wrote an article for The Daily Mail.
The blog was posted at 9:50pm on June 7th, 2023 and then updated at the same time.
Another important predictory after the IMF has upgraded its forecast for the UK's economy after its previous pessimistic predictions.
The OECD now thinks that the country will grow instead of shrink. It said in March that the country would shrink. Now it thinks the country will grow. It thinks the country will grow by 0.3% this year and 1% in 2023.
The IMF did the same thing last month. Now there's a new change. It's like a pirouette.
In January, the IMF predicted we would do very badly in 2023. The economy would fall by 0.6 per cent, worse than Russia. Now they think we'll have some growth - 0.4 per cent.
The good news exists. It was not highlighted in yesterday's headlines. The headlines focused on the UK's high inflation rate.
New report: Rather than shrinking by 0.2% like they thought in March, the OECD now expects the UK to grow by 0.3% in 2021 and 1% in 2023.
OECD says UK's inflation will be 6.9% this year. This is close to OECD's average of 6.6%. It's a warning.
UK's inflation is higher than average due to increased energy and labour costs.
Energy and commodity prices are dropping quickly. There's trouble with core inflation, which doesn't include energy and food prices, due to service costs.
The labor market is very competitive. Reforms need to happen quickly for them to make a difference.
The differences in forecasts are small, but important to know. The constant negativity can make people feel less confident in spending money.
Inward investment can decrease. A few months ago, people thought Britain would go into a deep recession. Do you remember that?
Germany appears to be the most ill country in Europe right now, but we shouldn't take joy in this.
The growth outlook is a little better, but it's too soon to talk about green shoots. However, green shoots are sprouting.
Borrowing costs and prices are going up. The amount of money available is getting smaller. This means inflation will slow down.
Many people will face more difficulty in the future. According to Equifax, 7.7 million mortgages will need to be remortgaged out of the 10.7 million that are active. These mortgages are on fixed-rates.
This year, 367,000 fixed-rate mortgages will end. The average outstanding balance is £170,000. If home-owners switch to variable rates, they may pay around £300 more per month.
The Bank of England should not change rates at the next monetary policy committee meeting on June 22. The recent rate increases need time to work.
WE Soda is going to the London Stock Exchange. It is the largest producer of natural soda ash in the world. Maybe, it will be included in one of the FTSE indices.
Turkey's Ciner Group is planning to release at least 10% of its shares for free trading. They may also release an additional 15% if needed.
The LSE did a good job by acquiring Soda. Soda is a valuable commodity firm with lots of potential for growth. Moreover, this is a strong indication that the LSE is serious about its role in the capital markets.
The Covid lockdown and war in Ukraine caused problems for supply chains. We need commodities like fertilisers and minerals for the global economy and food. These are important for our daily lives.
WE Soda provides soda ash that is important to the glass industry and other industrial processes. There is no other good substitute for it.
This substance can create many things like glass and batteries. It's even used in laundry soap.
The Ciner family wants more production sites. They already have some in Turkey and the US. Now, they want some in the UK and Belgium too. They want to double production.
Lots of people will want to buy the company's shares.
Marta Deserves Applause!
Last year, analysts were very critical about Marta Ortega becoming the chairman of Inditex.
She couldn't take over from her dad Amancio Ortega. They said it was too early. He started Zara, a really successful Spanish fashion store.
Marta, 39, had a 52% increase in profit for Q1 and good sales.
People should have to eat their hats.
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