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
Tag: bank of england
Spring Statement was yet another missed opportunity
The Chancellor’s Spring Statement sent a signal of “steady as she goes”. Unfortunately, what was really needed is a change of course. There was plenty of party political knockabout, but no major policy announcements and nothing to lift the spirits of consumers or businesses. This might have been fine if all were well. But there is little … Continue reading Spring Statement was yet another missed opportunity
Better UK economic news owes little to Labour’s policy choices
Friday was a relatively good day for UK economic data, with the latest news on the public finances, retail sales, and the PMI survey all better than expected. This followed Wednesday’s confirmation that headline inflation fell back in January. But is this really evidence that the worst is over – and are the Labour government … Continue reading Better UK economic news owes little to Labour’s policy choices
The hard sell: Britain needs to step up to fund its own defence
The BBC is reporting today that the Prime Minister is considering a significant increase in defence spending or, more precisely, that Keir Starmer is looking at bringing forward increases that have already been promised. The Labour government has previously committed to raising core defence spending from a little under 2.5% of national income currently to the new … Continue reading The hard sell: Britain needs to step up to fund its own defence
Plain-speaking Economics 