Tory Brexit DOOM™: higher prices and meagre pay deals.

[AtW]

Bank of England warns Brexit vote will damage living standards

The Bank of England has warned households that living standards will fall this year as the effect of the Brexit vote works its way through to higher prices and meagre pay deals.

Presenting a sober assessment of the economic outlook just weeks before the general election on 8 June, the Bank’s governor Mark Carney predicted living standards could start to recover in 2018 but , in the meantime, inflation would be higher than pay growth this year making it a “more challenging time” for households.

He said inflation, already at its highest for more than three years, was expected to continue rising in 2017 as the pound’s weakness since the Brexit vote raised import costs. As the UK embarks on talks to leave the EU, he also highlighted the uncertainty weighing on businesses as they hesitate over awarding pay rises.

“Uncertainty for companies about the outlook may also have made them unwilling to raise wages at a faster pace until they have more clarity about future costs and market access,” Carney said at a news conference to present the Bank’s quarterly inflation report.

https://www.theguardian.com/business...ates-inflation

DOOMED!

[The_Equalizer]

Bank of England warns Brexit vote will damage living standards

The Bank of England has warned households that living standards will fall this year as the effect of the Brexit vote works its way through to higher prices and meagre pay deals.

Presenting a sober assessment of the economic outlook just weeks before the general election on 8 June, the Bank’s governor Mark Carney predicted living standards could start to recover in 2018 but , in the meantime, inflation would be higher than pay growth this year making it a “more challenging time” for households.

He said inflation, already at its highest for more than three years, was expected to continue rising in 2017 as the pound’s weakness since the Brexit vote raised import costs. As the UK embarks on talks to leave the EU, he also highlighted the uncertainty weighing on businesses as they hesitate over awarding pay rises.

“Uncertainty for companies about the outlook may also have made them unwilling to raise wages at a faster pace until they have more clarity about future costs and market access,” Carney said at a news conference to present the Bank’s quarterly inflation report.

https://www.theguardian.com/business...ates-inflation

DOOMED!

Unlike the preceding few years.

[xoggoth]

https://www.youtube.com/watch?v=GphMOd3BV1k

[BrilloPad]

Blame Brexit instead of all the rich taking the money. I suppose he could have blamed immigration.

[Troll]

The sasguru skool of economic forecasting fookwits - Auntie Ethel reading her tea-leaves would be more of use and considerably cheaper

However, the ECB’s credibility problem is modest compared to the Bank of England’s. A recent book All Out War: The Full Story of How Brexit Sunk Britain's Political Class by Sunday Times political editor Tim Shipman, records that the stakes on both sides of the Brexit battle were so high that the Geneva Convention was almost breached, despite of course the veneer of politeness being meticulously observed by all actors at all times. Patrick Minford played a small but significant late part. Many had been sceptical when the Bank of England’s ‘gravity model’ based forecasts for a Brexit sparked recession were published. Minford knew these were not only wrong but carefully constructed ‘fixed’ models intended to influence the referendum. He formed a group of only perhaps ten economists who called themselves “Economists for Brexit,” and enjoyed substantial airtime. Now, more than six months later, the modelling is discredited and Carney has faced resignation calls

The Bank of England upgraded its growth expectations for 2017 on Thursday, offering a much rosier view of Britain's economic prospects than the doom and gloom forecasts it produced in the wake of the Brexit vote.

The Bank of England’s chief economist has admitted his profession is in crisis having failed to foresee the 2008 financial crash and having misjudged the impact of the Brexit vote.

Andrew Haldane, said it was “a fair cop” referring to a series of forecasting errors before and after the financial crash which had brought the profession’s reputation into question.

The forecasts published alongside the interest rate decision were for economic growth to edge up to 1.9% this year from 1.8% in 2016. That 2017 forecast was little changed from a 2% prediction made in February