BoE's Greene
The BOE's Megan Greene wrote a column in the FT.
- UK consumption recovery lags behind other developed economies
- UK savings rate high at 10% vs 5% in the US
- Three factors damping UK consumption:
- Precautionary savings due to cost of living crisis
- Restrictive monetary policy
- Interest rate changes impacting household incomes
- Discretionary spending remains below pre-pandemic levels
- Higher interest rates incentivize savings, delay purchases
- Household income from interest on savings has increased
- Full impact of higher rates on mortgages not yet felt
Cable is at the lows of the day at 1.3004 but that's being driven by broad US dollar strength.
