Despite the Bank of England’s hawkish tone, the next interest rate move is likely down
by Larry Elliott Economics editor from Economics | The Guardian on (#6G2DE)
With a weak economic outlook and shrinking inflation the Bank risks leaving rates too high for too long
Rising unemployment. Cuts in business investment. Falling house prices. An economy that at best is going to move sideways and could easily dip into recession. The Bank of England's latest quarterly update on the state of the UK economy makes grim reading, not least for Rishi Sunak.
The prime minister is leading a government well behind in the opinion polls and sorely in need of some good news before a general election that has to be held by January 2025 at the latest. According to Threadneedle Street, there is not going to be much between now and polling day to raise the spirits of voters.
Continue reading...