UK consumers run down savings to record low – business live

The saving ratio fell to a record of 1.7% in the first quarter as consumers grappled with shrinking disposable incomes

Analysts at Oxford Economics believe markets have overreacted to comments made by Mark Carney on Wednesday, when he said “some removal of monetary stimulus is likely to become necessary” if certain conditions prevail.

Andrew Goodwin, lead economist, does not think the Bank’s MPC will be rushing to raise rates this year.

Markets have been very sensitive to commentary from MPC members, particularly Governor Mark Carney. But in our view, the sudden move to price a rate hike in late-2017 is a major overreaction which was not in keeping with the substance of the comments.