UK Unprepared For Recession, Think Tank Warns – BinaryOptions

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Demo Account!
    Free Trading Education!
    Get Your Sign-Up Bonus Now!

  • Binomo
    Binomo

    Good Choice For Experienced Traders! 2nd place in the ranking!

UK Unprepared For Recession, Think Tank Warns

Published on September 30, 2020

The United Kingdom is the most recent country to receive a warning about an upcoming recession and according to a new report, they are not prepared to face it. The stark message, which comes from the independent UK Think Tank Resolution Foundation, warned that Britain was unprepared to face a recession in the next year, which could spell disaster for the country’s economy.

No Wriggle Room For BoE

The report also emphasised that the Bank of England, which was instrumental in pulling the economy back from the brink during the Credit Crunch, would likely not be able to provide the same level of support as it had due to staggeringly low-interest rates.

A common tactic to reverse the effects of a recession is to lower interest rates to stimulate spending- but it may not be as successful in our current scenario. Currently, the Bank of England’s interest rate policy is at just 0.75%.

Stimulate Economy

Of course, lowering interest rates isn’t the only way to stimulate an economy. The UK was one of a few major economies that used Quantitative Easing during the financial crisis in 2007. This process of injecting liquidity into a flailing economy was used alongside lowering interest rates to steady the volatile British economy in the wake of the Lehman Brothers collapse.

However, the same tactics may not be viable now, just a decade later. Because interest rates have been below 1% for nearly a decade, quantitative easing becomes less useful the longer the rates stay down.

Researchers from the foundation cautioned that these old methods would only provide approximately a quarter of the support the UK economy needs to prevent a recession sinking into a depression.

A recession is typified by two-quarters of zero or negative economic growth and the UK economy has consistently been struggling to grow since the beginning of 2020.

Moreover, a decline in general economic activity has been widely seen across all markets: Brexit and political uncertainty have slowed business activity significantly. Just this month, reports warned that the services industry, which makes up 80% of Britain’s economy, stalled in August and manufacturing ground to a halt over the last quarter due to business uncertainty.

UK Unprepared For Recession, Think Tank Warns – BinaryOptions

Covid-19. Even if you don’t get infected with the virus itself, it is absolutely certain that you will, to some extent, find yourself dealing with the fallout and the financial consequences. The state of the world’s financial markets is changing by the day. More and more money seems to be being lost, and even huge […]

UK Banks Prepare Coronavirus Contingency (March 16, 2020)

The largest UK banks have announced they will put together extensive contingency plans to ensure that the UK economy and stock market continue to function properly. Also, to ensure the banks can keep running with their staff, under fears that the coronavirus could continue to wreak havoc on the country as cases grow. HSBC Case After […]

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Demo Account!
    Free Trading Education!
    Get Your Sign-Up Bonus Now!

  • Binomo
    Binomo

    Good Choice For Experienced Traders! 2nd place in the ranking!

British Steel Rescue Deals Going Ahead (March 9, 2020)

The fate of British Steel has been hanging in the balance since the company fell into insolvency in early 2020, however, Chinese company Jingye is set to finalise their purchase in the week commencing 8 March 2020. Jingye To Buy British Steel From The Insolvency Service The rescue deal had stalled due to worries expressed […]

The Impact Of HS2 On The UK’s Transport Sector (February 17, 2020)

The background of the HS2 has been long and controversial, with many people threatened with being uprooted from their homes and much debate around the large expense. However, the struggle has seemingly been won as the UK government announced its plans to approve the HS2 project. The route, which is set to link London, Birmingham, […]

Africa’s Richest Woman Caught With All Fingers In Angola’s Pie (January 29, 2020)

The recent Luanda Leaks investigation illustrates the fragility of Africa’s burgeoning economy once again. They are also a significant signal to global traders of just how important it is to carry out research prior to any dealings in shares or currencies, particularly if ethical trades are a primary consideration. Isabel dos Santos is the richest […]

Liberty Steel To Cut Over 350 Jobs In Newport And South Yorks (January 14, 2020)

While all eyes have been watching British Steel for announcements of closure or job cuts, the steel industry is hit with more bad news. The Liberty Steel group took over Tata’s former British Steel plants in South Yorkshire and Newport back in 2020, but announced on 9 January 2020 that more than 350 jobs would […]

CMA To Officially Investigate Amazon-Deliveroo Deal (January 4, 2020)

The Competition and Markets Authority (CMA) will launch an official investigation into Amazon’s purchase of a share in UK food delivery service Deliveroo after it was announced that the two companies had failed to come up with enough justification for the sale to go ahead. Concerns Raised Earlier in December, after the CMA voiced concerns […]

UK Markets React To General Election Results (December 20, 2020)

After Britain went to the polls on December 12th, electing the Conservatives into office for another five years with a majority of over 60 seats, markets and stocks across the United Kingdom saw significant shifts and changes as the world reacted to the re-election of current PM Boris Johnson. Sterling Gains Sterling made a sharp […]

British Car Manufacturers Weigh In On Brexit Debate (December 6, 2020)

Brexit and issues surrounding any future No Deal Brexit have dominated UK headlines for months, and one of the latest warnings about the future of manufacturing in the UK related to the car sector. The Society of Motor Manufacturers and Traders which represents the entire vehicle sector in the UK issued a bleak update on […]

Boots Owners Receive Record-Breaking Buyout Deal (November 22, 2020)

The parent company of UK pharmacist and retailer Boots, Walgreens Boots Alliance, have seen their share price peak late this week after rumours began to circulate that a private equity firm, KKR, has made a deal to buy out the company completely. The deal, which if it is successful will be the biggest buyout of […]

Thomas Cook And Fitbit Bought In Busy Weekend (November 14, 2020)

The first weekend of November has proven to be very busy. Thomas Cook has been sold to Fosun, the owner of Club Med, in a deal reported to be around £11 million. At the same time, Fitbit was bought by Google for £1.6 million. Thomas Cook Continues To Be Sold In Pieces Despite its failure […]

Just Eat Has Takeover Bid (November 5, 2020)

Just Eat has been subjected to a counter bid for the business. The fast-food delivery company has been recently looking to take over one of its competitors, but on Tuesday 22nd October, they received a bid that valued it at 710 pence per share. The company that made the bid was Prosus. A global internet […]

ASOS profits slump (October 31, 2020)

Online fashion retailer ASOS has reported a significant downturn in profits after a disappointing last twelve months sparked by increased competition and a series of problems at the company that saw customers turning elsewhere. Numerous Issues The company placed the blame for these disappointing figures on problems with their warehouses both in Europe and the […]

Hays Travel Pledge To Buy Out Thomas Cook (October 22, 2020)

In a shock announcement made last week, Hays Travel has agreed to a deal that will buy out all 555 Thomas Cook locations, saving over 2,000 jobs in the United Kingdom. Hays, an independent travel company and a direct competitor of the travel agency, has said that the move will allow the company to expand into […]

Ovo Buys SSE To Become Britain’s 2nd Largest Energy Supplier (October 14, 2020)

Ovo Energy, the biggest UK independent energy supplier, has purchased Southern and Scottish Electric (SSE) and merged to create what will become the second-largest energy supplier in the UK. SSE, which is listed on the London Stock Exchange as part of the FTSE 100, will sell its retail business for £500m to the Bristol-based Ovo, […]

UK Unprepared For Recession, Think Tank Warns (September 30, 2020)

The United Kingdom is the most recent country to receive a warning about an upcoming recession and according to a new report, they are not prepared to face it. The stark message, which comes from the independent UK Think Tank Resolution Foundation, warned that Britain was unprepared to face a recession in the next year, […]

Why Indices Might Be An Option For Active Traders (September 10, 2020)

For starting traders looking to venture into short term trading, indices offer an interesting choice to speculate on movements in stock such as FTSE, DAX, Nasdaq, S&P, and Dow Jones. These indices are baskets of different individual shares ranked by independent organisations like specialist companies or significant banks. The considerable merits of trading indices include: Lower Risks […]

Watch Wholesale Price Manipulation Live

Moral of the story – if there’s no volatility don’t trade!

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Demo Account!
    Free Trading Education!
    Get Your Sign-Up Bonus Now!

  • Binomo
    Binomo

    Good Choice For Experienced Traders! 2nd place in the ranking!

Like this post? Please share to your friends:
Guide How To Become Binary Options Trader
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: