The recovery seems to be strong – but a rate rise will bring it crashing down
by Guardian Staff from on (#FFCF)
Sweden and Canada have both suffered the consequences of raising rates too early. No matter how good GDP figures are this week, the Bank should take care
Britain's growth rate returned to Mach 2 speed in the spring and early summer. That's the consensus among City analysts ahead of official figures out this week, handing George Osborne another golden arrow with which to shoot down his critics.
It is the re-emergence of the big-spending consumer (who snaps up a new bed and sofa while ordering a case of wine) that is likely to have prevented the UK economy from repeating the lacklustre growth rate of 0.4% seen in the first three months of the year.
If rates go up in November or possibly next February, the betting must be that they will soon come down again
Continue reading...