ICYMI, here’s a summary of my comments on X (formerly Twitter) on today’s Bank of England announcement… The Bank of England’s decision to cut interest rates by ¼% to 4½% was welcome but completely overshadowed by a gloomy set of forecasts. The MPC has been forced to act because the UK economy is crashing. The … Continue reading Crashing UK economy needs lower rates
Tag: interest rates
Trump’s new tariffs are bad for the US – and probably for Britain too
A recent survey by the pollsters Opinium found that, whatever they may think of Donald Trump as a person, a majority of Brits actually like his policies. In most cases this made sense. But the new-found enthusiasm for trade protectionism is worrying and, if I may say so, distinctly un-British. The downsides are already showing. … Continue reading Trump’s new tariffs are bad for the US – and probably for Britain too
Is the UK sliding back into ‘recession’?
The answer to this question partly depends on your definition of ‘recession’, but I can think of at least three ways of approaching it. First, "two quarters of falling GDP"? Probably 'no', or at least not yet. Second, "two quarters of falling GDP per head"? Almost certainly 'yes'. Indeed, we already appear to be in … Continue reading Is the UK sliding back into ‘recession’?
What to make of soaring bond yields
The latest surge in gilt yields - which represents the cost of new borrowing by the UK government in the bond market - is yet another shock that the already fragile economy could do without. To be fair, this crisis is not entirely the making of Rachel Reeves and her October Budget. Bond yields have … Continue reading What to make of soaring bond yields
