Negative GDP in Q2. Resilient leading indicators. The BoE fears inflation at +12% Monetary policy measured. Decreasing risks for the pound. Opportunities in bonds. Attractive relative valuations for equities.
Key Points
UK GDP advanced by +0.8% in Q1
The 2nd quarter could be down by -0.2
Surprising resilience of leading indicators in Q2
Unemployment rate nears all-time low
Loss of household confidence threatens consumption
BoE fears inflation will rise to +12% in 2022
New opportunities in the bond markets
The BoE is gradually adjusting its monetary policy