The inflation report from 11th May and newly released data provide further evidence that the UK economy is increasingly unbalanced. The Bank of England has warned that wages are stagnating, while everyday prices are rising, leading to a higher cost of living.
Positive Money’s submission to the Treasury Select Committee on the effectiveness and impact of post-2008 UK monetary policy
The House of Commons Treasury Select Committee is undertaking a landmark inquiry into monetary policy. Our aim is to persuade the committee to acknowledge monetary policy’s bad side-effects and to consider the benefits of fairer and more sustainable monetary policy tools. With this in mind, we coordinated a joint letter from over 40 leading economists, as well as a statement from nearly 10,000 people.
Most recent figures suggest that consumer prices are increasing, while average wages are stagnating – meaning that people across the country are facing higher costs of living. To finance higher costs of living, more and more people are borrowing.
The Bank of England will announce its latest interest rate decision later today. The monetary policy committee, including departing Deputy Governor Charlotte Hogg, is expected vote to keep rates just above zero.
With this week’s budget, the Chancellor doubled down on a failed economic model. The government will continue cutting spending into the next parliament, and earlier this week, it was revealed that the Treasury has asked most departments to find an extra 6% of savings.