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What's in issue eleven: Should Rachel Reeves be looking back to the Seventies to see the economic future?

Issue eleven of ‘INTEREST’ further highlights:

• How much can looking at economic and political history tell us about what the future might look like? The answer may be found in how closely recent events have mirrored the tumultuous events that defined the 1970s, which is explored in the latest issue of INTEREST magazine (Pages 6 & 7).

• The surprise drop in inflation this month to below the Bank of England’s 2 per cent target has prompted inevitable calls for further cuts to base rate. But, says Darren Cook, of INTEREST magazine, there are still plenty of inflationary pressures in the system which means the MPC should take a cautious approach, not least the potentially inflationary risks in the upcoming Autumn Budget.

• “September’s CPI reading was driven by a sharp fall in energy prices which will prove temporary as we move into winter, especially with concerns over escalating tensions in the Middle East,” he says. “Services inflation is also proving sticky, and we’re yet to see the last of public sector pay disputes, which history shows have the potential to spark a wage spiral if managed carelessly.”

• That’s a history lesson explored in the new edition of INTEREST, and one the new Chancellor Rachel Reeves will be keenly aware of as she heads to the despatch box next week to deliver a Budget that simultaneously plugs the nation’s fiscal black hole and sparks growth. “The Chancellor’s position isn’t an enviable one,” says Cook. “If Ms Reeves gets her sums wrong, we could see a ‘Truss 2.0’ style response that sees both Government bonds and the pound come under pressure once again.” (Pages 8 & 9)

Issue twelve published Friday 6 December 2024 

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