The Bank of England risks becoming Public Enemy Number 1 again this week. On Thursday the Bank’s Monetary Policy Committee will announce their latest decision on interest rates. If they surprise the markets by cutting rates just two weeks before election day, some will accuse them of trying to do the Conservatives a favour. On … Continue reading The Bank of England should ignore politics and cut rates on Thursday
Tag: bank of england
Has the Bank of England missed the boat?
The global interest rate cutting cycle has begun, but there is little sign that the Bank of England is ready to jump on board. How much longer will the UK have to wait? This question became even more pressing last week when the European Central Bank (ECB) trimmed official rates in the euro area for … Continue reading Has the Bank of England missed the boat?
Thoughts on inflation, interest rates – and a surprise July election
Some personal reflections on today’s news (as usual, all views here are my own only). First, the economics. The fall in UK inflation from 3.2% to 2.3% in April was slightly smaller than expected, but still another big step in the right direction. Admittedly, the ‘core’ rate excluding food and energy, at 3.9%, was still … Continue reading Thoughts on inflation, interest rates – and a surprise July election
Could the economy still save Rishi Sunak?
Voters will obviously need to believe that the "economic plan" is working if the Conservatives are to have any chance of winning the General Election. But while it's not yet showing in the polls, some essential parts of the jigsaw are now falling into place. Indeed, Labour’s Rachel Reeves appeared worried enough to launch a … Continue reading Could the economy still save Rishi Sunak?
Plain-speaking Economics 