The current Conservative Government has pledged to meet its 2015 manifesto commitment to deliver one million homes by the end of 2020 and to “deliver half a million more by the end of 2022“. For this to be met, completions would need to rise to levels not seen since the late 1970s.
Unfortunately for the UK Government, increasing the housing supply has long been a difficult challenge. There has… Read the article
The cost of new mortgage borrowing and payments on outstanding household debt can have a large impact on the rate of growth of an economy. For this reason, central bankers are interested in the transmission mechanism of monetary policy. It has been shown that interest rates can have a stronger influence on an economy where there are a high proportion of variable rather than fixed-rate mortgages… Read the article
A couple of weeks ago I headed back to my hometown of Sydney, Australia. In between the barbies, the beach and a few beers, I managed to get around and film this short research video.
Australia is the 13th largest economy in the world and those that live there enjoy a very high standard of living. Growth is dominated by its service sector which makes up around 70% of GDP, whilst the total minin… Read the article
Being an Australian sporting fan hasn’t been easy during my time at M&G over the past five years. The Olympics, rugby, cycling, cricket, tennis… Britain’s golden-age of sport has coincided perfectly with the decline in Australia’s sporting prowess. On top of this, I had the misfortune of seeing my premier league team get relegated last season (though there are definite green shoots of recovery … Read the article
Being a German abroad, I am very aware that one never runs out of German stereotypes to discuss. One of the stereotypes is the German obsession with price stability and fear of price instability. The latest results of the M&G YouGov Inflation Expectations Survey indeed confirm the current worry about inflation amongst the German public. The chart below suggests that Germans have an exceptionall… Read the article
As many of you are aware, we have been following the developments in housing markets quite closely, particularly in the UK. The housing markets were both a signpost and then a symptom that helped to drive inflation lower and brought the banking system close to collapse. For the UK, the chart we have focused on the most is the use of mortgage approvals as a lead indicator for the strength of th… Read the article