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Dumb Leading The Dumber

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Anybody read this? This is ridiculous. Do these guys actually read the news? Oil is nearing $70 a barrel and will remain high in the short term until the Iran thing is sorted and even then resolving the matter may actually lead to a massive spike in the oil price (depending upon how the whole thing pans out). If this guy is right i.e. that the slow down is related to a high price of oil, God help us if Iran actually stops exporting oil to the west and the US had a bad hurricane season against this year. After the revelations about Kuwait’s lies regarding the state of their reserves (predicted by Matt Simons) the price may not actually fall much below what it is at the moment ever again. If Kuwait has been at it for years, you can bet that a few others have too. Can anybody imagine the effect on the price of oil if Saudi admits that it has been overstating its reserves too? If they do, life as we know now it is over.

Oh, and has he noticed that the Fed and the ECB have been raising interest rates? But of course that won’t impact upon the £. We’ll just be able to drop our interest rates without a worry. I can’t believe these guys are paid to give out advice like this?


Roger Bootle, economic adviser to Deloitte, believes the economy will pull through its current uncertainties and interest rates will fall to 4% and "could go lower". The effects of the surge in the oil price, which was largely to blame for last year's slowdown, will begin to fade, he says, while sliding oil costs will boost economic growth.

The relatively limited impact on inflation from the jump in oil prices compared with previous periods and a softish landing in the housing market bode well for prospects, he says in the latest edition of Deloitte's economic review.

With growth forecast at just 2%, he believes the Monetary Policy Committee is likely to cut interest rates further.

"Although one obstacle to lower rates is the relatively high rate of inflation, this will cease to be a barrier as the impact from higher energy prices fades," says Bootle.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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