29th September 2022
Columbia Threadneedle: Is the UK headed for a Financial Crisis?
A distinguished economist once said that economic policy is like driving a car with blackened front and side windows.
This week, the Bank of England (BoE) will hit the brakes with another base rate rise. Two days later Liz Truss’s new Chancellor, Kwasi Kwarteng, will press down on the accelerator with a fiscal event that cuts taxes and provides a massive open-ended energy subsidy to every household in the UK. We could skid off into a recessionary ditch or jump into a scary fast lane of rising inflation and very high interest rates. Or we could get a financial crash with all three.
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