Mixed news on the UK growth outlook
A strong outturn for November took the output measure of GDP above its pre-pandemic peak. Given GDP is likely to have fallen in December, the quarterly version probably didn’t pass this landmark in Q4. However, timely data suggests the hit from Omicron will be small and relatively short-lived.
What you will learn:
- But the long-term outlook appears softer in light of the new ONS population projections.
- The ONS now expects lower births and higher deaths, putting more emphasis on immigration to grow the UK workforce.
- The revisions imply softer growth in potential output, with the level of GDP in 2050 set to be 1.5ppt lower.
Housing supply front and centre for policy makers
The passing of the previously delayed Housing Australia Future Fund (HAFF) means that all the Albanese government's announced housing policies are now in place. These policies represent a minimum funding pool of $5.5 billion stretching to the end of the decade, potentially lifting as high as $10 billion if all targets are met and excess fund returns achieved.Find Out More
BoJ will continue effective zero interest rate policy anyway in Japan
The Bank of Japan (BoJ) maintained the policy rates at its September meeting, following a tweak in its yield curve control policy in July. Although this decision was widely expected, the markets are starting to speculate policy changes within the coming quarters, especially after the BoJ governor's recent interview.Find Out More