One of the oddities about the narrative on the direction of interest rates is the argument that, because consumer price inflation is still above the 2% target, the Bank of England cannot cut interest rates. That suggests that interest rate policy changes immediately impact the current inflation rate in the short term. However, this view …
Productivity: the UK’s biggest economic challenge?
Latest figures show that UK productivity fell back in Q1 to the levels previously seen prior to the financial crisis in 2008. Quite frankly, it’s shocking to see that productivity hasn’t grown at all in almost a decade, and that we’re actually producing a bit less now per hour than we did then. The broad …
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