Sterling recovered some ground yesterday against the US dollar, and even more against the euro, as fears over the Omicron variant faded for investors.
Indeed there is some debate that over time the UK could benefit from a higher rate of booster vaccinations.
A surge in Chinese imports by 32%, however, has strengthened the commodity-backed currencies and sterling has weakened sharply against the Australian, Canadian and New Zealand dollars, and the NOK.
One of the Bank of England’s interest rate setters, deputy governor Ben Broadbent, warned that inflation would “comfortably exceed” 5% in early 2022 as energy bills rise. Even so, he struck a dovish stance on interest rate rises which, along with comments from another MPC member Michael Saunders, suggests the rise in interest rates may be delayed into next year.
While car sales are still being impacted by people staying at home in the age of Covid-19, new van sales hit their highest ever in November, more than 11% above pre-pandemic levels.
House prices rose 1% in November, with Wales the big winner, having seen a near-15% increase in prices in the past year, closely followed by Northern Ireland, South West England and North West England. London, on the other hand, rose just 1.1%.
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