UK economy continues sideways drift with no sign of uplift
by Larry Elliott Economics editor from Economics | The Guardian on (#6G902)
Bank of England is unlikely to cut interest rates any time soon and Treasury unlikely to cut taxes due to fear of higher inflation
Like a sailing ship trapped in the doldrums, Britain's economy is going nowhere. The latest official growth figures for the third quarter of 2023 show the sideways drift of the past 18 months continuing. Without population growth the performance would have been even weaker.
Clearly, higher interest rates are having an impact. The UK economy is heavily reliant on the residential housing market to propel it forwards, and that engine has been shut off as a result of the steady increase in the cost of borrowing from the Bank of England since December 2021.
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