It is obviously a bit harsh to judge anyone’s premiership by just one announcement on the first day, but a token cut in VAT on domestic electricity bills does not bode well. In case you missed it, the new government has announced that the rate of VAT charged on domestic electricity bills will be cut … Continue reading Burnham’s first big idea: lower your bills by raising your taxes?
Category: Monetary policy
The Bank is unlikely to raise rates this week, but maybe it should?
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?
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”
Plain-speaking Economics 