There are three good reasons to expect the Bank of England’s MPC to “wait and see” for at least another month. Nonetheless, there may be one even better reason to pull the trigger now - "credibility". A Reuters poll of sixty-five economists last week found that all sixty-five expect the Bank of England’s Monetary Policy Committee to … Continue reading The Bank is unlikely to raise rates this week, but maybe it should?
Category: Monetary policy
Weekly wrap: more heat than light from the politicians
Politics is heating up for the summer, but there were at least a few more reasons to hope that underlying inflation pressures may be starting to cool. This is the second weekly wrap of the key points from my social media posts on the UK economy, on the markets, and occasionally on the politics too. … Continue reading Weekly wrap: more heat than light from the politicians
Weekly wrap – the UK is heading for “stagflation-lite”
Although not as bad as the dark days of the 1970s, the UK economy is heading for a period of falling activity, rising inflation, and higher unemployment. Government tinkering with prices won't help. By overwhelming popular demand (Sid and Doris Bonkers), I’m launching a weekly wrap of the key points made in my social media … Continue reading Weekly wrap – the UK is heading for “stagflation-lite”
How much should we worry about surging gilt yields?
Investors are mainly being spooked by global inflation fears, not UK politics. But the additional uncertainty created by the crisis in the Labour government is definitely not helping! Once again, UK government bonds (aka gilts) are making the news again, and not in a good way. The yields on these bonds can be read as … Continue reading How much should we worry about surging gilt yields?
Plain-speaking Economics 