The Bank of England will weigh the weakness of Britain’s wage growth against the strength of its economic recovery when it delivers fresh forecasts in its quarterly inflation report on Wednesday morning, containing signals about when a rise in interest rates is likely.
<To be delivered in tandem with the latest UK employment data, the BoE’s estimates of the amount of slack in the economy will be one of the most closely watched metrics. At the last quarterly inflation report in May, the BoE estimated the amount of spare capacity was between 1 – 1.5 per cent, judging there was room for this to narrow further before rates tightened.
By Sarah O’Connor and Claer Barrett
1) ECONOMICS The FT’s chief economics commentator, Martin Wolf, evaluates the impact of Baroness Thatcher on Britain’s economic performance both during her time in power and afterwards.
“For the UK, the 1980s, 1990s and 2000s did mark the first sustained period since the 19th century when GDP per head rose more than in the other large European economies. Unfortunately, the post-crisis economic malaise, the high inequality, the persistent regional imbalances and the over-reliance on an unstable financial sector mar this success.”
2) SOCIETY Hugo Young was a political columnist for the Guardian from 1984 until 2003, and wrote a biography of Margaret Thatcher, One of Us. Two weeks before he died, in 2003, he wrote this piece about Thatcher and her legacy. The Guardian published it on Monday. Young praises Thatcher’s self-confidence, and how little she cared if people liked her – a quality he notes is markedly lacking in today’s politicians. But he worries about the change in British social attitudes that she fostered: