At its February 2023 Monetary Policy meeting, the Bank of England signalled the peak in the Bank rate had been reached. What are the likely reasons for this? Ten interest rate hikes have taken the rate from 0.1% to 4%. The effect has been a housing market in sharp reverse, business failures beginning to rise, …
A look ahead to 2023
My first prediction is that I am confident that only some of the projections people make will fully capture what happens this year. One of the lessons of the last few years is that more disruptive events are occurring more frequently than before, causing more uncertainty. Some things will continue this year: technological change will continue …
Has the Chancellor tightened policy too much?
Framed as a budget to shrink debt and control inflation, Jeremy Hunt’s statement in the fifth fiscal event of this year essentially left most of the heavy lifting to 2025 and beyond. Of the measures announced, some three quarters were spending cuts, and just one quarter were tax increases. Of the £61.7 billion fiscal tightening …
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