the bank of england Report of the Monetary Policy Committee issued yesterday makes for grim reading. These graphs are all from the first chapter on the economic outlook:
The Bank does not expect growth until 2026. You could call that its own mark on its own mismanagement of the economy.
As a result, it will take us, singularly in the G7, until 2026 to recover from Covid, assuming nothing else happens in the meantime to throw us off course (which is a big assumption):
The price of this incompetence will be paid by the people who will lose their jobs:
You might think they don’t care, given the nonchalance with which they make such forecasts.
And the amazing thing is that they raised interest rates even though they admitted that a) there is no way that the rate increases they have already delivered have impacted inflation to any significant degree and b) there is no scenario in which they can imagine inflation. increasing again, as this graph shows:
As they actually show, energy costs are actually going to reduce inflation now:
But even though they know the underlying cause of inflation is going away, they still want to impose recession on the UK.
Because? The big unspoken reason is that outside the EU, the UK economy basically can’t grow because it doesn’t have the people to do it.
This, of course, could be celebrated. We would be the first post-growth economy. The problem is that there is no plan for that. All the old targets are still in place, with a shrugged acknowledgment that there’s no chance of delivering against them.
This is an economic failure on a grand scale, and the Bank of England is making it worse.
But so is the entire political class that refuses to talk about Brexit. Rarely has politics been so utterly irresponsible.
