Last December, in a Bank of England (BoE) speech entitled the ‘Spectre of Monetarism’(1), its governor Mark Carney said that ‘over the past decade real earnings have grown at the slowest rate since the mid-19th Century’. To evidence this statement, the BoE published the chart below:
The Office of Budget Responsibility (OBR) - the government’s fiscal watchdog – has released a ‘Fiscal Risk Report’. Positive Money welcomes its in-depth analysis, but we are concerned with its central findings.
UK households are saving less than they ever have. The latest ONS data puts the UK household saving rate at just 1.7% in the first quarter of 2017 – the lowest rate since records began in 1963: