A detailed report in the Financial Times this morning lays out the options being considered by new Prime Minister Rishi Sunak and his likely Chancellor, Jeremy Hunt, ahead of the fiscal statement on October 31. Aside from a hint that Sunak may want to move the date – unlikely, given the close match between PM, […]
The Sunak/Hunt plan to ensnare Labour? Read More »
Very interesting report in the Telegraph this morning, seemingly briefed by the Treasury, on Chancellor Jeremy Hunt’s thinking ahead of the 31 October fiscal statement, billed by Hunt on Monday last week as the occasion for “eye-watering” cuts. Media reports following duly followed in turn, threatening a return to the bad old days of George
Expectations management and austerity 2.0 Read More »
The Governor of the Bank of England, speaking at an IMF conference yesterday evening: Bank of England, as reported before breakfast this morning: In between time, the pound had done this: Modern central banking is mostly about the communications of modern central banking. Take former European Central Bank president Mario Draghi’s declaration that he would
What is the Bank of England playing at? Read More »
The main rate of inflation in the UK, the Consumer Price Index, fell from July’s 40-year peak of 10.1% to 9.9% in August. This reflects the impact of sharp declines in the global price of oil over the summer, which fed into the falling price of motor fuel. However, food prices are continuing to rise,
Inflation down slightly, but the crisis continues Read More »
The IMF reports that inflation globally continues to be driven by rises in the price of food and energy: Food and energy are the main drivers of this inflation… Indeed, since the start of last year, the average contributions just from food exceed the overall average rate of inflation during 2016-2020. In other words, food
Global inflation still driven by food and energy prices. Recession is the likely result. Read More »
There’s an unpleasant calm before the storm feel to British politics at the minute. Anyone who remembers the period from the end of 2006 through to the debacle of autumn 2008, with the failure of Northern Rock as a half-way point, will be familiar with the sensation: of watching an increasing number of the proverbial
How bad will it get? Read More »
Overshadowed by the appalling news from Ukraine, Chancellor Rishi Sunak presented the annual Mais Lecture in London a couple of weeks ago. Traditionally used by Chancellors (and, sometimes, Shadow Chancellors) as a space to fill out the detail of their economic plans, and (they hope) give the impression of some depth of thought behind them,
Rishi Sunak’s market moralism Read More »
The Financial Times front page this morning splashes on reports that China is dropping its studied neutrality over the Russian invasion of Ukraine: China signalled it was ready to play a role in finding a ceasefire in Ukraine as it “deplored” the outbreak of conflict in its strongest comments yet on the war. Beijing said
China’s economic relationship with Russia is the key Read More »
Latest inflation figures from the Office for National Statistics put average price rises in the 12 months to September at 4.2%, its highest rate of growth since November 2011. Back then, a post-financial crisis surge in prices pushed inflation to above 5%, and it stayed high until mid-2014 when OPEC’s decision to maintain oil production
Inflation is here to stay, but not for the reasons you think – a response to Martin Wolf Read More »
Good news as the Bank of England’s Monetary Policy Committee (MPC) voted to once again hold its base rate steady at 0.1%. This comes a day after the US Federal Reserve Board, the equivalent rate-setter for the US, voted to also leave rates untouched. After months of warnings that a rates rises was imminent, with
Bank of England holds rate steady, more pessmistic about the future Read More »
