The Bank of England has cut its base interest rate by 0.25% to 4.75%, leaving a positive real interest rate of nearly 3% in place in the economy, which is going to crush the life out of it.
Core CPI is 3.2%. The real interest rate is therefore 1.55%. That low enough Spud?
I suspect he wants the interest rate to be below the inflation rate so he can inflate the debt away. Remember, this is a man who wanted the only investment option for pensions and ISAs to be government bonds paying a coupon of 1%.
Joe Biden: “I may be Irish but I’m not stoopid.”
Murphy can’t make that claim. At least not honestly. Though Joe’s claim wasn’t honest either.
But Bailey seems to have been promised something by TTK, perhaps a knighthood or something special when we rejoin the EU. Reeves budget was hugely inflationary as well as being spitefully destructive so interest rates should already be increasing but instead they went down. Perhaps that’s the secret to getting a K – be incredibly incompetent in the public sector, like Davey and Starmer and boom! it’s Sir Andrew…
I’m becoming really superficial in my old age. I look at photos of Bailey and think no, no, no, don’t trust him with anything. For me this all started with Cameron.
My wife says I’ve just taken decades to catch up with womenkind: there is an art to read the mind’s construction in a face.
@ dearieme
Bailey has a face you’d like to punch.