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Weekly Economic Briefings - Uk Weekly Economic Briefing

Weekly Economic Briefings - Uk Weekly Economic Briefing

The past eight years have been characterised by tight fiscal policy and loose monetary policy. But, with the Budget seeing the Chancellor loosen the fiscal stance and the MPC continuing to signal a steady increase in interest rates, we appear to be in the early stages of a move towards a more ‘normal’ policy mix. However, the shadow of Brexit loomed large over both events. The Chancellor dangled the carrot of further fiscal loosening, if MPs backed a Brexit withdrawal deal. And the MPC attempted to dampen expectations of rate cuts in the event of ‘no-deal’. In both cases we find reason to doubt the messages conveyed.


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