Hi today I am going to talk about a
news published in the online newspaper the guardian of the United Kingdom at
the economic section
This news talks about a great topic
because the economy at United Kingdom is emerging from “the long and dark
tunnel of stagnation into the sunlight of strong growth” this because houses
and car provided the latest evidence of recovery.
How houses and cars can recovery
the economy? Because buying a home and buying a car represents the two
big-ticket items of consumer spending and “when times are bad, then the number
of people putting their foot on the property ladder is a good guide to an
economy starting to gather momentum.”
The last studies that showed that
the number of first-time buyers was up by 45% between July 2012 and July 2013.
The figure was the highest for any month since November 2007, when the
financial crisis was still in its infancy.
Two months of strong data and a
further increase in market interest rates later, however, there was radio
silence from the Bank.
The lack of a statement did indeed
lead to interest rates on 10-year gilts edging towards 3% and the pound rising
against the dollar and the euro. It is hard to believe, however, that the Bank
is happy with this state of affairs. It still believes that a premature
tightening of policy could choke off nascent growth.
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