In the memorable words of one official statistician, Britain’s economy was “going gangbusters” at the beginning of 2024. Unfortunately, last year appears to have ended with a whimper. The best hope now is that this pattern will be reversed in 2025, with a sluggish start giving way to a strong and sustained recovery. But the … Continue reading Is there hope for Britain’s economy in 2025?
Category: Monetary policy
What to make of soaring bond yields
The latest surge in gilt yields - which represents the cost of new borrowing by the UK government in the bond market - is yet another shock that the already fragile economy could do without. To be fair, this crisis is not entirely the making of Rachel Reeves and her October Budget. Bond yields have … Continue reading What to make of soaring bond yields
UK economy has stalled but disaster not yet inevitable
First, the bad news – and there is plenty of it. Updated figures from the Office for National Statistics show that the UK economy failed to grow at all in the third quarter of the year, revised down from an increase in GDP of just 0.1%. Most forecasters, including the Bank of England, expect zero … Continue reading UK economy has stalled but disaster not yet inevitable
Stalling economy unlikely to sway the Bank of England
On Thursday (19 December), the Bank of England’s Monetary Policy Committee (MPC) will reveal its latest interest rate decision. Those of us hoping that the recent bad economic news will prompt another cut are set to be disappointed. Believe it or not, most forecasters still expect Rachel Reeves’ first Budget to boost the economy in … Continue reading Stalling economy unlikely to sway the Bank of England
Plain-speaking Economics 