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Constrained by fiscal policy and a weak secular outlook, the incumbent Bank of England Governor will be challenged to restore real growth to the economy.
Given that UK domestic demand remains constrained by fiscal austerity, a banking sector still looking to deleverage and a consumer facing at best flat real income growth, it is likely that real GDP will struggle to get above 1% for the life of the current Parliament.
After some indications that quantitative easing (QE) has lost its bite, has QE reached the end of its useful life? We think not.
The aggregate employment picture masks some striking deviations across age groups.