The Bank of England should not raise interest rates until 2022
But Britain may need tighter money sooner than America
BRITAIN IS UNIQUELY exposed to the malign forces troubling the world economy. It gets two-fifths of its energy from natural gas, which is in short supply. Trade flows are worth more than half of its GDP, making bunged-up supply chains particularly painful. Brexit has exacerbated its labour shortage and disrupted trade further. It even has a high rate of covid-19 infections, posing a lingering threat to consumer confidence, though more than 90% of the population has antibodies against the disease.
This article appeared in the Leaders section of the print edition under the headline “Don’t jump the gun”
Leaders October 23rd 2021
From the October 23rd 2021 edition
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