The U.K.'s current account deficit (which is where a country is importing more goods and services than it is exporting, and stands at £32.5 billion for Britain) is financed by capital inflows, he noted. And that's partly because productivity and therefore competitiveness has not been very good relative to our trading partners. Sterling's depreciation is a long-term trend since it was allowed to float freely in 1971, he said, telling CNBC: "I think it's reasonable to expect that to continue. We don't what to see these price increases which have come about partly because of Ukraine and so on, we don't want to see wage rises that will trigger price rises and spiral." "If it contributes to a wage price spiral then that is inflationary, and that's what we're all concerned about now. It's not necessarily giving us inflation in terms of a continuous rise in the price level," he said. He also noted currency depreciation had a level effect on prices rather than being inflationary. demand for foreign goods - but nor was there on exports, which theoretically become more competitive. Richard Portes, professor of economics at the London Business School, also noted the U.K.'s reliance on foreign trade, which means a "significant" impact on prices from a weaker currency, though he said there was not yet evidence of a significant effect on U.K. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
0 Comments
Leave a Reply. |