There are strong arguments against raising UK interest rates as far as the markets are currently expecting. But I do not believe these arguments are sufficient to justify not raising rates at all... This is an extended version of my submission to the Shadow Monetary Policy Committee run by CityAM, where I reluctantly voted for … Continue reading Why the Bank should follow the ECB and hike rates
Tag: investing
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
The Bank is unlikely to raise rates this week, but maybe it should?
There are three good reasons to expect the Bank of England’s MPC to “wait and see” for at least another month. Nonetheless, there may be one even better reason to pull the trigger now - "credibility". A Reuters poll of sixty-five economists last week found that all sixty-five expect the Bank of England’s Monetary Policy Committee to … Continue reading The Bank is unlikely to raise rates this week, but maybe it should?
Why it would be wrong to equalise capital gains tax and income tax
In principle, taxing income from labour and capital equally might appear to be fairer, simpler, and more efficient. In practice, it would almost certainly be none of these things. Wes Streeting has proposed a “wealth tax that works” as part of his Labour leadership pitch, by equalising capital gains tax (CGT) with income tax. Or in … Continue reading Why it would be wrong to equalise capital gains tax and income tax
Plain-speaking Economics 