With inflation continuing to rise and central banks reacting by raising interest rates, the critical question must be how high will rates have to rise to curb inflationary pressure? To do that, we need to consider what a ‘neutral’ interest rate – one that kept prices steady – would look like, and how much higher …
Economic shocks and the tightrope to growth
Yet again, the Chancellor’s Spring Statement turned into a Spring Budget. Expectations were that the Government would intervene to alleviate the impact of higher fuel and food prices on household income. Whilst fuel duty was cut by 5p a litre for 12 months and the National Insurance threshold raised, for many, those expectations weren’t met, …
Continue reading “Economic shocks and the tightrope to growth”
An election Budget?
This Budget was presented by a government that seemed to be preparing for an imminent general election. It promised tax cuts, continued growth, lower fiscal deficits and more spending on the NHS and the welfare state. Of course, a lot of this may not come to pass. Given the significant turbulence of the last …