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Emeritus Prof Christopher May /
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2023-12-20 09:22:48

Emeritus Prof Christopher May on Nostr: So #inflation has now dropped to 3.9%, reflecting (if #economic models are correct) ...

So #inflation has now dropped to 3.9%, reflecting (if #economic models are correct) the #interestrates environment around a year ago (the time it takes interest rates to feed into the 'real' economy).

Given this trajectory (successive falls in inflation), we might expect the BoE to start to reduce interest rates.... but given the continuing rhetoric about 'worryingly high' wage rises, my guess is they will stick with them where they are.

What they want is a recession to 'discipline' #workers
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