The larger than anticipated jump in UK inflation in April has prompted many to argue that the Bank of England’s Monetary Policy Committee will now be much slower to cut interest rates. But there is, of course, nothing that the MPC can do now about last month’s CPI. The right question to ask is what … Continue reading No, the MPC doesn’t have a time machine…
Tag: Budget
The Government should hold the line on public sector pay
The independent pay review bodies are reportedly set to recommend pay increases of around 3pc for NHS staff and 4pc for teachers. However, the Government has only budgeted for a 2.8pc increase for public sector workers. This is broadly in line with expected price rises over the coming year, but still higher than the Bank … Continue reading The Government should hold the line on public sector pay
Is the UK economy really bouncing back?
The news that the UK economy grew by 0.5% in February, lifting the three-month growth rate to 0.6%, is obviously welcome. But these ONS figures should come plastered with health warnings. For a start, monthly GDP data are notoriously volatile, and often revised. A sharp correction is possible in March and especially in April, when … Continue reading Is the UK economy really bouncing back?
Why the UK should cut tariffs on the US, not raise them
The siren calls for retaliation against the US if President Trump imposes new tariffs on the UK remind me of this exchange from 'Braveheart'.... Longshanks: Archers! English Commander: I beg pardon, sire. Won't we hit our own troops? Longshanks: Yes... but we'll hit theirs as well. The serious point here is that tariffs hurt people … Continue reading Why the UK should cut tariffs on the US, not raise them
Plain-speaking Economics 