Policymakers have become increasingly concerned about their “exit strategy” from the unprecedented measures they have used to cushion their economies from the impact of the financial crisis over the past five years.
In a study of the impact of “unconventional” policies, including the Bank’s £375bn bond-buying programme, economists at the IMF found the Bank could sustain losses of anything up to 5.5 per cent of GDP, or almost £80bn, when it sells the bonds back into the market.
Eurozone imports reflect weakness
The trade surplus for the eurozone in March hit its highest level since the bloc was formed in 1999, driven by a continued decline in imports that reflects very weak demand at home as well as steadily rising exports, reports the Wall Street Journal.
The figures released yesterday indicate that the region’s trade surplus increased in the first quarter as a whole, suggesting that weak demand was also responsible for the decline in output during the period.
CBI chief John Cridland issues warning over European Union exit
The head of Britain’s most powerful employers’ organisation today issues a blunt warning about the risks of quitting the European Union after the Conservative party signalled the beginning of a drawn-out parliamentary battle over plans for an in-out referendum by 2017, reports the Guardian.
Budget black hole at heart of George Osborne’s finances
George Osborne’s attempt to slash £11.5bn off public spending in election year has run into cabinet trouble, after ministers identified only £2.5bn in cuts to their budgets, reports the Financial Times.
Some ministers failed to provide Mr Osborne with the list of 10 per cent in proposed departmental cuts he ordered before last month’s deadline. One said the chancellor was “asking too much”.
Gold hits 4-week low on ETF selling
Gold fell to a four-week low on Thursday, with an increasing number of investors becoming bearish about the precious metal as it has fallen through technical support levels, reports the Financial Times.
Lloyds’ shares close in on ‘break even’ level
Shares in Lloyds Banking Group rose to within a whisker of the price at which support for the taxpayer-backed bank is booked by the government, increasing the prospect of a share sale as soon as this year.
