Including thoughts on why Andy Burnham is wrong about “austerity” and Brexit, on bonds and the Budget, and on why the construction sector is such a good bellwether of the success of Labour’s policies... Theme of the Week On Tuesday Andy Burnham addressed MPs on the direction in which he hopes to lead the country. This … Continue reading Weekly wrap – No, Prime Minister…
Tag: broad money
Bank of England edges closer to an autumn hike
A small rate rise soon could be preferable to larger increases later - a case of “a stitch in time saves nine”. However, subdued money growth and strong competition should help keep inflation down. The Bank of England’s MPC left UK interest rates at 3.75% today, as expected, but the 6-3 split was more hawkish. … Continue reading Bank of England edges closer to an autumn hike
Bank of England tees up rate cuts – at last
The Bank of England’s Monetary Policy Committee (MPC) left its key interest rate on hold at 5¼% this week, as expected, but there are some clear signals that cuts are coming soon. For a start, Dave Ramsden (Deputy Governor for Markets and Banking) joined Swati Dhingra in voting for an immediate reduction to 5%. This … Continue reading Bank of England tees up rate cuts – at last
The MPC should now pause for breath
The Bank of England’s Monetary Policy Committee (MPC) increased UK interest rates by another half point this week, as most had expected, taking them to 4%. But it also hinted that rates may not rise much further - if at all. I think the MPC has got this about right. The decision to raise interest rates was … Continue reading The MPC should now pause for breath
Plain-speaking Economics 