Yesterday’s decision to keep monetary policy on hold in the UK was such a foregone conclusion that it barely made ripples. But predictability does not mean the Bank and economists are equally calm beneath the surface. Rather, they are furiously paddling to try to work out what on earth is going on with the British economy.
Here, I will try and present a pretty neutral post on the current outlook, against which to judge next week’s Bank of England Inflation Report.
In these circumstances, any converts to tighter monetary policy would find it tricky, to say the least, to justify their new hawk status. Read more