The Bank of England recently issued a report that was a mix of good and could-be-better news about the economy and consumers that could ultimately impact its related exchange traded fund (ETF).

Could Be Better

• The United Kingdom is deeper in a recession than previously thought, and this will lessen the inflationary pressures and keep them under the central banks’ 2% estimate. Official interest rates will rise slowly and the recovery should be slow yet steady.

• Matthew Saltmarch for The New York Times reports that unemployment is at its highest rate in 14 years, as companies are still cutting jobs. The puzzling thing is that fundamental indicators are signaling that the global recession is easing.

Good

• Household and business confidence have rebounded from their low levels seen last fall

• The central bank’s asset purchase program may have helped ease the lending crisis; the central bank has expanded this program

The Bank of England governor Mervyn King attacked the big banks for their role in tipping the world into a deep recession, one with which the United King is still wrestling . Katie Allen and Ashley Seager for Guradian report that British banks, households and government have high levels of debt that will keep a recovery on a slow path for the time being.

• iShares MSCI United Kingdom (EWU): up 22.8% year-to-date

For more stories about United Kingdon, visit our global ETF category.

Tags: Europe, EWU, Global ETFs, United Kingdom