"For mortgage holders, it's another reminder that fiscal policy and monetary policy are now pulling in opposite directions, and ordinary families are caught in the middle."
"Welcome to 1970s style stagflation. Even with rising unemployment, high inflation will be the issue that stops deep rate cuts from the Bank of England's Monetary Policy Committee. It seems regardless of who inhabits Downing Street, this country's economic woes continue and prospects look as bleak as a mid-winter."
"If Rachel Reeves' goal was to kill off the UK economy she would have passed with flying colours. At a time when British business needs an injection of capital through tax cuts to stimulate the stagnation in the veins of UK companies, she's likely to fill the needle with a poison. More tax cuts will kill off the slight prospect of any growth and this is what we should expect from an incompetent chancellor."
Inflation reached 4% in September, up from August's 3.8% and double the Bank of England's 2% target according to S&P Global. Official figures are due Wednesday, adding pressure before the Autumn Budget on 26 November. Analysts blamed April tax rises for weakening borrowers and household spending. Omer Mehmet warned that borrowers would be the big losers and that fiscal and monetary policy are pulling in opposite directions, squeezing families. Riz Malik compared the outlook to 1970s stagflation and said high inflation will limit the Bank of England's ability to deliver deep rate cuts. Samuel Mather-Holgate criticised planned tax measures as damaging to growth and business investment.
Read at London Business News | Londonlovesbusiness.com
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