Jackie Bowie discusses the Bank of England's interest rate decision on Sky News
Summary
Business Live host Ian King interviews Jackie Bowie about the Bank of England's November interest rate decision. Will the decision follow the consensus of pausing the interest rate hike, or will the Bank continue rising?
With the Monetary Policy Committee (MPC) echoing what the Fed has recently said, the message more likely will be that we are going in the right direction, but we are not out of the inflation fight - we are leaving the door open for further rate rises if inflation doesn't come under control. However, there may be other factors that define a recession.
Jackie Bowie on Sky News Business Live"We all get hooked on the definition of a recession being two consecutive quarters of negative growth. The reality is, the economy could still grow marginally, but we behave like we're in a recession."
While employment and wage inflation has historically shown to be key economic data points for the MPC, the Labour Force Survey has been deemed unreliable. The Committee is now looking away from the headline number and towards what is actually happening in the economy to forecast growth.
With consumer sentiment, business investment, and the service and manufacturing sectors slowing down, the Bank is forecasting a weak 2024.
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