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Senior economist warns of deteriorating outlook

Growth prospects hit hard by Osborne Budget

Hit hard by decades of unsustainable debt, globalisation, energy prices, productivity, anti work benefit initiatives.

Independant isnt the worst of the Bunch, but my god do the papers take us for idiots. Do they honestly expect me to believe if there was no 2.5% VAT hike we'd be partying like its 2006?

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Selectively quoted for maximum impact:

The British economy faces a triple whammy of higher inflation, lower growth and rising unemployment, according to one of the Bank of England's most senior policy makers.

Living standards over the next few years will rise only "minimally". In an interview with The Independent, the Bank's chief economist, Spencer Dale, said that he did not expect inflation to return to its 2 per cent official target before the end of next year, about a year later than previously hoped, partly because of the hike in VAT to 20 per cent from January announced in the Budget.For the next "three, four, five years, demand in the economy will be "incredibly anaemic" relative to previous recoveries. The economy, said Mr Dale, would not return to normal "for an awfully long time". Over the next few years living standards, said Mr Dale, will be "less good than they would otherwise be" and will show only a "modest", "minimal" improvement. Tax hikes, muted pay rises, unemployment and public spending cuts will mean that things "won't feel good" for many families. Rising unemployment will also restrain house prices. The extent of the fall in public sector employment will depend on how public sector wage demands react to the pressure on budgets, said Mr Dale.

Good heavens that is doomy. The BoE seem to be piling into the BearWave. Why on earth would they do that?

Official data on economic growth in the second quarter of the year will be released by the Office for National Statistics tomorrow. While the pick-up in the economy is widely expected to have gathered pace, the European sovereign debt crisis in May and the June emergency Budget will have damaged business and consumer confidence, implying weaker growth and a possible "double dip" in future.

Meanwhile the European banking system faces a potential crisis tomorrow when the "stress tests" undertaken by European regulators on 91 leading institutions will be published. Banks that fail the tests – designed to determine their ability to withstand a financial shock – will have to be rescued or allowed to fail.

Are they expecting a bad day tomorrow?

Edited by Timm

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Whose living standards are they referring to ?

Why would Joe averge's living standards show any improvement in the face of current inflation and wages freezing and falling ?

Here they are admitting inflation is going to remain above target and they wont act to deal with this. Thanks a bunch. :angry:

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:angry: I also dont swallow the statement that

""the extent of the fall in public sector employment will depend on how public sector wage demands react to the pressure on budgets.""

When your department budget goes down 25% or more the result will be redundancy bloodbaths, More so if you already have a public sector wage freeze in place.

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  • 152 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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