No UK recession in 2023 The UK is expected to avoid a technical recession in 2023, according to the Office for Budget Responsibility. But the economy is still expected to shrink by 0.2%. The most common definition of recession is that of a ‘technical recession’ in which there have been twoRead More →
Highest food prices since 1977 The cost of living rose unexpectedly again last month as food prices increased at the fastest rate since 1977/78 Alcohol prices in restaurants and pubs also increased, as inflation jumped to 10.4% in February from 10.1% in January year to year Clothing costs, particularly forRead More →
Interest rates up despite bank failures The Federal Reserve on Wednesday increased interest rates by 0.25%, despite the banking turmoil and failure of Silicon Valley Bank. The Federal Reserve expressed caution about the recent banking crisis and indicated that hikes are near the end. It’s all under control – justRead More →
Come deposit with us… Silicon Valley Bank is reportedly now marketing itself as the, ‘single safest place to keep or transfer your deposits.’ The new CEO is reported to have said, ‘There is no safer place in the U.S. banking system to put your deposits.’ WOW! That didn’t take longRead More →
Will the recent high profile bank failures spread to other smaller banks? The current meltdown in the banking sector has released fearful memories from the 2008 financial crisis to re-surface. In that major crisis, some of the biggest banks in U.S. collapsed, damaged by the discovery of sub-prime lending practicesRead More →
Failure and Frailties exposed in the banking sector After the failure of U.S. Silicon Valley Bank and Signature Bank and with the frailties exposed at Credit Suisse, other U.S. regional banks came under extended pressure yesterday. But these banks of critical concern were swiftly dealt a financial lifeline bringing themRead More →
European Central Bank increases interest rate The European Central Bank (ECB) announced a further rate increase of 50 basis points, despite the current backdrop of market turmoil in the banking sector. The ECB had previously signalled it would be raising rates again at its March meeting – and it did! Pressure InitialRead More →
In view of the recent ‘mini banking crisis’ – will the Feds fight with inflation mean U.S. interest rates will still go up this month? Two or three more increases of 0.25%? Markets still expect the Fed to keep up its inflation fight, despite recent bank failures that have unexpectedlyRead More →
Go to Gold Gold hit its highest price since early February 2023 yesterday as investors move to gold during financial shocks such the SVB closure. Gold is always seen as a safe haven asset in such times of crisis. Safe Investors sought safety with their money at Silicon Valley Bank andRead More →
Shifting Rate Expectations Traders and investors alike are rapidly shifting their expectations over the Federal Reserve’s next move amid the crisis of confidence sweeping U.S. banks. Market pricing appears to be suggesting a significant chance the central bank will not make a change to interest rates in March 2023. RateRead More →