Economics Weekly – Interest Rate Cycles Compared – Only Modest Signs Of Credit Crunch? by Lloyds TSB

There has been a lot of debate about the impact of the credit crisis on the UK economy, with any new sign of weakness in economic data automatically laid at its door. We will not attempt in this piece to try and disentangle whether weakness in the economy is due to the credit crisis or to other factors.

Interest rate cycles compared – only modest signs of credit crunch?

 

Little sign of credit crisis in this rate cycle…

 

There has been a lot of debate about the impact of the credit crisis on the UK economy, with any new sign of weakness in economic data automatically laid at its door. We will not attempt in this piece to try and disentangle whether weakness in the economy is due to the credit crisis or to other factors. But it might be useful to compare the evolution of a number of key economic variables in the current interest rate cycle (we define a cycle as a move from one trough to another) in the UK with the previous cycle.

 

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