Bank Of England Meeting 11th Feb 2020
Andrew Brassey attended the recent Bank of England meeting and was keen to report the following from both the BoE and the other small to medium business owners based here in the North West of England.
Firstly the BoE report that growth slowed in 2019, to below 1%;
- 4th Q flat
- 3rd Q slight growth, due in part to companies stock piling stock ahead of Brexit
- 2nd Q fall in growth due to Brexit concerns
- 1st Q slight growth, due in part to companies stock piling stock ahead of Brexit
At the start of the year, 2020, BoE stated that confidence improved across the board with no talk of interest rate increases, this was due to confidence in the markets, though is unlikely to reduce rates either. The prediction of 0.75% growth, with 2021 / 2022 improving on this. In part this growth is due to the government spending monies, as per their manifesto.
It was briefly discussed that as yet there are no concerns over stock / goods supply due to the Coronavirus.
There is a new £20 note being released 20.02.2020, with the artist Turner as the main picture, this will be slightly larger then the £10 note, and the old £20 notes will have a 6 months shelf life before being made obsolete.
Talk in the room
- Overall there was confidence in the economy, with the majority of companies experiencing an increase in orders / sales.
- Farming is difficult, milk supplier went into administration, affecting 82 dairies. New Holland putting agricultural machinery up 6%. John Deer closing dealerships, 22 down to 11.
- Holiday Cottages, seen an increase in bookings, they also now do nightly lets, to keep pace with their local major competitor.
- Anwyl Homes, 90 years trading, all good news, sales are strong, easing prices up on some developments, a strong start to the year for property.