Thursday, February 21, 2013
Here yo go!
A clutch of global banks and funds have warned clients to steer clear of UK Gilts, fearing that the Bank of England has opened the door to â€œstagflationâ€ and risks losing credibility. Rene Defossez from Franceâ€™s Natixis said Britain looks vulnerable on multiple fronts, not helped by talk of European Union exit. Public debt will reach 110pc of GDP by 2016. The current account deficit is deteriorating. The country is stuck in a vicious circle as a high â€œfiscal multiplierâ€ prevents budget cuts from making a dent on the deficit.