In view of the looming June Budget, the economic recovery remains worryingly dependent on the inventory cycle and government spending. The prospect of tighter fiscal policy and job losses in the public and private sectors implies that economic growth will stay weak for some time. As such, we think the recent rise in inflation will be short-lived and see no need for the MPC to raise interest rates.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services