Politics is heating up for the summer, but there were at least a few more reasons to hope that underlying inflation pressures may be starting to cool. This is the second weekly wrap of the key points from my social media posts on the UK economy, on the markets, and occasionally on the politics too. … Continue reading Weekly wrap: more heat than light from the politicians
Tag: gilt yields
The case for a late Budget
The Chancellor has confirmed that the date of the Autumn Budget will be Wednesday 26 November. This is relatively late, raising fears that a longer period of speculation and uncertainty will undermine confidence even further, but there are always trade-offs. I can think of five reasons why waiting might make sense. First, and perhaps most … Continue reading The case for a late Budget
How could a bond market crisis unfold?
The yields on UK government bonds, commonly known as “gilts”, are now consistently the highest among the G7 group of advanced economies. Why is this, and why should the rest of us care? The numbers alone are disturbing. The cost of new government borrowing for ten years is now around 4.8% in the UK, compared … Continue reading How could a bond market crisis unfold?
The Budget has just made the Bank’s job even harder
It is good to start for once with some praise for the Bank of England. After the Halloween Budget in the UK and the fireworks of election night in the US, the Bank’s Monetary Policy Committee helped to calm the nerves by delivering the expected quarter point cut in interest rates (to 4.75pc) on Thursday. … Continue reading The Budget has just made the Bank’s job even harder
Plain-speaking Economics 