Low rise and rising prices – it looks sad for the UK

Another deduction in interest rates, and the surprise here was that today a bumper was given more idea on a half percent cut in rates, as the UK’s economic stagnation is predicted to expand the first part of this year.

If everything was the same, the perception would be that the weak economy will now lead further to gradual cuts this year, which will reduce the interest rate by 4% or less by the end of the year.

But the stable economy is now with the risks of faster inflation than high energy prices.

Inflation is expected to “grow quite rapid” in autumn, getting close to 4%, inspired by the increase in gas prices by the need to fill drought storage facilities after a cold winter. While a recession is estimated to be narrowly avoided, zero increase and high and rising inflation textbook is “stagflation”.

The bank at the top of all is emphasizing that it will “be careful” with the cut against the backdrop of President Trump’s business policy. Uncertainty is not only about what he does, but the market reaction to it, and other countries including Britain. Today’s weak forecast did not make factor in American tariff policies.

This is far from the happy set of data for the Chancellor. The economy has been flat since March. A technical recession is postponed narrowly, but there is a risk of very little or no increase in this year.

The economy is estimated to increase only 0.75%during this year, half of the rate of rate in November. Unemployment is expected to increase in the next two years.

With the trade report, it is stated to be exposed to the bank that more firms referred to the budget as a preventive for investment “Business property refers to relief, inheritance tax and national insurance.

The bank has also done its own stocktack of prolonged health of the economy, concluding that the disease, epidemic and braxit all killed the productivity of the economy.

In all, a challenging domestic vista is growing with global uncertainties.