What is LIBOR?
LIBOR (the London interbank offered rate) is essentially the rate at which banks lend money to each other.
Unlike the Bank of England Base Rate, LIBOR is not set directly. Instead it is calculated based on the supply and demand …
What is quantitative easing?
Quantitative easing (QE) is the Bank of England’s scheme to boost the economy by buying government debt. Essentially the Bank of England creates new money and uses it to buy loans to the UK government (commonly known as gilts).…
What is a gilt?
A gilt is essentially a loan to the UK government. An investor in a gilt is essentially giving a loan to the UK government. Typical investors in gilts would include pension funds, banks & insurance companies.
There are many different …
UK economy slides back into recession
The UK economy has returned to recession, after shrinking by 0.2% in the first three months of 2012.…
What is a recession?
A recession is defined as when there are 2 consecutive quarters where gross domestic product (GDP) falls. (This fall is often referred to as negative growth or a contraction in the economy.)…