Review of the Week
UK inflation simply won’t drop as fast as everyone hopes, leading the Bank of England to admit it needs a new model. Meanwhile, a compromise is proposed to kick the can on the US debt ceiling till after the next election.
UK inflation isn’t falling as fast as most people expected, which is playing havoc with British bond markets.
We noted last week that the Bank of England (BoE) thought inflation would drop from 10.1% to 8.4% in April –… Continue reading
Inflation can often seem an abstract concept. Not lately, though: everyone is keenly aware of soaring prices. Is inflation finally starting to drop?
It’s a big week for UK inflation, but you’ll be forgiven for feeling like it hasn’t turned a corner just yet.
The Office for National Statistics reveals the inflation figure for April on Wednesday. The Bank of England’s (BoE) analysts have forecast a large drop of 1.7 percentage points, which would take the rate from 10.1% to… Continue reading
There’s a disconnect between how everyone feels and how stock markets are moving. Meanwhile, the US debt ceiling looms ever larger.
Virtually everyone you talk to is bearish: the future is uncertain; inflation isn’t falling as fast as everyone would like; costs from labour to debt interest payments are rising; central bankers are like a riddle of sphinxes. And yet stock markets keep creeping higher in 2023.
Markets don’t rise by themselves. They rise because investors bid them higher. They… Continue reading
A King is crowned and most of England went to the polls last week. Coming up is a Bank of England rate hike and an update for American inflation.
King Charles III was crowned on a classic, drizzly English Saturday. The pageantry of the dignified arm of the British state followed only a few days after the more frequent, yet no less important, ritual of the efficient arm: the English local elections.
The UK can be an odd place for… Continue reading