2 June 2023 - Inflation fuelled by Brexit, claims Larry Summers
The UK economy suffered a pair of blows yesterday after a month of generally good news since the IMF announced its “volte-face” over the nation’s performance over the rest of 2023. The Nationwide survey of house prices was published, and it showed that across the entire country, prices fell by 3.4% in May, its largest fall in close to fourteen years. Then Larry Summers, the influential economist and former U.S. Treasury Secretary commented in an interview that it would be a major surprise if the UK didn’t suffer a recession in the next two years and that even this year, it is not out of the question that the economy could slip into a mild recession this year. The Nationwide Building Society in a report that accompanied the data warned that further interest rate rises could see the market fall by even more. This may be good news for first-time buyers who have seen house prices continue to rise in the past few years, even during the Pandemic, although then Chancellor, Rishi Sunak provided significant support in the shape of cuts to stamp duty. Beyond Currency Market Commentary: Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.