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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
UK
- UK household savings are rising as a result of sustained real wage growth and more attractive deposit rates, with the savings ratio hitting 11.1% in Q124.
- Apart from the extraordinary surge in savings during Covid (driven by the collapse in consumption and introduction of income-protection policies), in the last 25 years the ratio has exceeded 10% only briefly in 2009-2010 and Q415.
- Before the GFC savings were compressed alongside the credit boom, while in the aftermath savings temporarily surged as deleveraging intensified, but then pushed lower as ultra-loose monetary policy re-inflated demand and disincentivised term saving.
- The recent rise in savings is atypical. Real wages have risen steadily since mid-2023 on the back of a tight labour market and rapid disinflation after CPI peaked in Q422. This accounts for the rise in gross disposable income over this period.
- In addition, while households were drawing down savings during the ZIRP era, recent monetary tightening has now motivated a shift away from cash on hand (currency, notes and sight deposits) to term saving (particularly tax-efficient ISAs)
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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