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: labour market
Has the Bank of England missed the boat?
The global interest rate cutting cycle has begun, but there is little sign that the Bank of England is ready to jump on board. How much longer will the UK have to wait? This question became even more pressing last week when the European Central Bank (ECB) trimmed official rates in the euro area for … Continue reading Has the Bank of England missed the boat?
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 