The jump in UK inflation from 3.0% to 3.3% in March is obviously bad news but not quite as bad as some had feared (or at least no worse). In particular, the Bank of England had expected this number to be “close to 3½%” when interest rates were left on hold last month. Moreover, this jump can … Continue reading Subdued money growth should limit inflation risks
The Green Party’s pay cap policy is nuts
The Green Party has unveiled another set of policy proposals designed to “end the affordability crisis”, including universal support with energy bills this winter, free school meals for all, the introduction of rent controls, and joining a customs union with the EU. I would happily challenge any of these proposals. But the one that caught my … Continue reading The Green Party’s pay cap policy is nuts
Two scenarios: “TACO”, or “Trumpageddon”?
In the early stages of the Iran crisis the markets priced in a relatively benign scenario. The conflict was expected to be short, lasting days if not weeks, with limited fallout for energy prices and for the global economy. A month on, this has proved to be far too optimistic. Indeed, the future looks increasingly … Continue reading Two scenarios: “TACO”, or “Trumpageddon”?
The Bank is right to talk tough on inflation
The Bank of England MPC’s decision to keep interest rates on hold this week was widely predicted, but the accompanying language was more hawkish than expected. The clear message was that the Bank no longer has a bias towards further cuts and is now ready to change rates in either direction. This has already triggered a sharp … Continue reading The Bank is right to talk tough on inflation
Plain-speaking Economics 