Today’s inflation figures showing CPI is down to 3.9% is a perfect illustration of why the Bank of England is independent.
The Chancellor claimed that it showed the UK was back on the path to sustained growth, a claim that seems to have nothing to do with the inflation figures or the growth figures for that matter. The PM seems to think he has brought the rate down all by himself.
But in the last few days various senior Bank figures have been making it clear that they have no intention of lowering interest rates any time soon. They are focussing on wage rises in the private sector, producer prices and the fact that inflation is still stubbornly above their 2% target. They will also have had an advance look at the inflation figures, which helps to explains their recent comments.
It makes the PM’s claim that he is the one who has brought down inflation ridiculous, and the Chancellor’s claims pathetic. Higher interest rates are here for month and months to come, as is low growth.
But, they would stay higher for longer if we let the Chancellor or the PM near them, because no one would trust them not to try to make political capital out of lower interest rates. After all they are very quick to claim credit, for something that is nothing to do with them.
Maybe they could just thank the Bank for its hard work and implacable independence, on a Xmas card perhaps?
This is probably my last Jotting this year, I will be back in 2024. Perhaps with fewer, longer and more analytical pieces, unless you all like a daily rant?
Please let me know and in the meantime; a very Merry Christmas and a Happy New Year to one and all.
Economics, trade and Brexit, not necessarily in that order but the dog always comes first.
By Jonty Bloom Media
I LOVE your daily rants! But would also be very happy with fewer, longer pieces - so long as you still ranted occasionally. Very best wishes for a peaceful and happy Christmas
The daily rants are great! Interspersed with a few longer, analytical pieces... even better. 😊