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Professor Costas Milas is a Professor of Finance in the University of Liverpool’s Management School
The latest Bank of England forecasts assume annual GDP growth of 0.4% in 2020 Q1 (down from 0.7% in November 2019), 1.4% in 2021 Q1 (down from 1.7% previously) and 1.6% in 2022 Q1 (down from 1.9% previously).
At the same time, they assume lower inflation in 2021 Q1(1.5% as opposed to 1.7% previously) and 2% in 2022 Q1 (as opposed to 2.1% previously). These forecasts are what I would call a “textbook interest rate cut”.
Yet, despite downward revisions to both GDP growth and CPI inflation, the Bank of England decided to leave interest rates unchanged.
This is, quite honestly, shocking.
One explanation I can think of is that a possible cut now would have been interpreted as lack of confidence in the UK economy just one day before “Brexit day” which would not have gone down well at all with the Government. On the other hand, by deciding not to cut now, the Bank seriously risks following behind the curve.
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Management School to host online business brunch with Senior Bank of England Economist
Making use of the Report + Support tool
Expected industrial action dates – February and March
On Friday 10th Feb, @UoLManSchool, in collaboration with @LpoolCityRegion Growth Platform, are hosting a free online webinar with Senior @bankofengland #economist Ryland Thomas to discuss the UK economy.
All are welcome, read more here 👉https://news.liverpool.ac.uk/2023/01/27/management-school-to-host-online-business-brunch-with-senior-bank-of-england-economist/
From @IrishInstitute and @LivUniEnglish Dr Eleanor Lybeck @NellLybeck has written for @ConversationUK about the use of the #circus as a political metaphor. 🤡🎪
Read the article in full here 👉https://theconversation.com/how-the-circus-became-the-metaphor-of-choice-in-political-rhetoric-197973
The authors of a new report (inc @livuni Prof David Taylor-Robinson) have warned that rising living costs will lead to immediate and lifelong harms for children in the North of England and have called on government to act now #ChildoftheNorth