The jump in UK inflation from 3.0% to 3.3% in March is obviously bad news but not quite as bad as some had feared (or at least no worse). In particular, the Bank of England had expected this number to be “close to 3½%” when interest rates were left on hold last month. Moreover, this jump can … Continue reading Subdued money growth should limit inflation risks
Tag: money supply
Why the Bank of England should sit tight this week
The UK interest rate decision this week is finely balanced – so much so that I was not even sure which way I would vote. Nonetheless, over the course of writing this piece I have persuaded myself to switch to ‘no change’, even though the actual decision is still likely to be a cut. This … Continue reading Why the Bank of England should sit tight this week
No, the MPC doesn’t have a time machine…
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…
Podcast on UK inflation and monetary policy
I recorded a podcast for the Institute of Economic Affairs (IEA) on Friday 6th May on UK inflation, definitions of 'recession' and 'stagflation', and what more the Bank of England could (and should) have done. You can listen here... https://ieapodcast.podbean.com/e/interest-rates-how-to-control-inflation/
Plain-speaking Economics 