“Large tax rises from Jeremy Hunt ‘could put UK at risk of deeper slowdown’
Such a move may force Bank of England to rethink interest rates approach, says its chief economist
Britain risks a deeper than expected economic slowdown if Jeremy Hunt sets out large tax rises and spending cuts at next week’s autumn statement, the Bank of England’s chief economist has warned.
Huw Pill said a tough fiscal settlement from the chancellor could weigh on the British economy by more than the central bank currently anticipates, in a development that would force it to rethink its approach to setting interest rates.
Asked in an online event if there was a risk that higher interest rates from the Bank alongside large tax rises and spending cuts could dampen the economy at a far greater rate than desired to tackle soaring inflation, he said: “There is a risk of that. But it is a risk we are very alive to.”
https://www.theguardian.com/business...eeper-slowdown
Oh that’s a problem now?
Chunt is going for the Nobel prize in taxing his way out of recession
Such a move may force Bank of England to rethink interest rates approach, says its chief economist
Britain risks a deeper than expected economic slowdown if Jeremy Hunt sets out large tax rises and spending cuts at next week’s autumn statement, the Bank of England’s chief economist has warned.
Huw Pill said a tough fiscal settlement from the chancellor could weigh on the British economy by more than the central bank currently anticipates, in a development that would force it to rethink its approach to setting interest rates.
Asked in an online event if there was a risk that higher interest rates from the Bank alongside large tax rises and spending cuts could dampen the economy at a far greater rate than desired to tackle soaring inflation, he said: “There is a risk of that. But it is a risk we are very alive to.”
https://www.theguardian.com/business...eeper-slowdown
Oh that’s a problem now?
Chunt is going for the Nobel prize in taxing his way out of recession
