Michael Selby-Green, provided by Published 4:38 am, Wednesday, May 16, 2018 Suzanne Plunkett/Reuters Bank of England deputy governor Ben Broadbent forced to apologise after describing the UK economy as "menopausal." Ben Broadbent used the term when describing the country's current low productivity crisis. His choice of words sparked criticism on Twitter, forcing the Bank of England to issue a statement. LONDON — Bank of England deputy governor Ben Broadbent has been forced to apologise after describing the UK economy as "menopausal." The deputy governor, who sits on the committee that sets UK interest rates, told the Telegraph in an interview that financial experts used the "menopausal" metaphor for economies that were "past their peak and no longer so potent." Business Channel Now Playing: Now Playing First-Class Passenger Booted From Flight After Sneaking Drinks to Friends in Coach Buzz 60 Uber Is Changing the Way It Handles Sexual Assault Fortune … [Read more...] about A Bank of England official was forced to apologise after calling the UK economy ‘menopausal’
Bank of England deputy governor Ben Broadbent has raised eyebrows after labelling the UK economy as "menopausal", having moved past peak productivity. In an interview with the Telegraph, Broadbent compared the performance to the dip at the end of the 19th century, in between the ages of steam and electricity, with another tech rebirth on the horizon, potentially surrounding artificial intelligence. Broadbent was quoted in the Telegraph saying the "menopausal" description was a metaphor used by financial experts for economies "past their peak". Read more: BoE deputy governor Ben Broadbent says more rate rises are on the way Conservative MP for Devizes Claire Perry, said: "I can't be the only 50+ woman objecting to Broadbent's pejorative description of the UK economy as menopausal. I've never been more productive!" Fellow Tory MP Rachel Maclean said it demonstrated "massive ignorance of the menopause". Meanwhile, Robert Peston, ITV's political editor said: "Sloppy, empirically unsound … [Read more...] about Bank of England deputy governor Ben Broadbent criticised for referring to ‘menopausal’ UK economy past its peak
Can we relax about the UK economy now that wages are rising faster than inflation? Ben Brettell, senior economist at Hargreaves Lansdown, says YES. It is never a good idea to be totally relaxed about the economy, as events have a habit of taking economists by surprise. This is especially true with Brexit on the horizon. But I do think the doom and gloom is overdone. Yes, first-quarter GDP was disappointing, but I agree with the Bank of England that it’s likely to be a blip rather than the start of a worrying trend, or even a recession. Wage growth is unspectacular and likely to remain so until we can sort out the UK’s productivity issues. But with inflation falling back, real wages are rising, and that should support the consumer sectors. Meanwhile interest rates look set to stay low. It looks like we’re in the classic “Goldilocks” situation: the economy is not too hot to stoke domestic inflation and force interest rates higher, and not too cold to induce … [Read more...] about DEBATE: Can we relax about the UK economy now that wages are rising faster than inflation?
It's a favorite tabloid newspaper headline: The Royal Wedding will bring a HUGE boost to the economy. Parts of the British press have been confidently suggesting Prince Harry and Meghan Markle's nuptials on Saturday will benefit the country's economy to the tune of hundreds of millions of pounds. Retail spending is likely to get a lift from fans and well-wishers buying Royal Wedding souvenirs and food and drink for parties. But past experience shows that grand royal events don't usually produce the big bucks businesses would like, and they barely register in terms of the performance of the wider economy. "We would be wary of over-egging the potential impact or seeking to put a hard figure on the potential gains," said Howard Archer, chief economic adviser to the EY ITEM Club. "It should be kept in mind that some of the retail spending may just be switched from spending on other items." If history repeats itself, the Royal Wedding will fall flat in terms of economics. … [Read more...] about Will the Royal Wedding boost the UK economy?
Fresh figures have confirmed a picture of weak growth in the UK economy so far in 2018. The struggling construction sector lost its bright spot of new private house building, which fell into recession in March, while manufacturing output edged down. Overall, industrial production which includes energy, mining and manufacturing grew by 2pc year-on-year in the first quarter of 2018, largely thanks to an uptick in households turning on the heating as cold weather hit the UK. Compared to the last three months of 2017 there was a 2.5pc increase in energy supply, with a considerable boost from a 7.5pc increase in gas. The Office for National Statistics shot down suggestions that recent flattening out of growth after months of strong expansion in the manufacturing sector could be attributed to poor weather as a result of the so-called Beast from the East. Rob Kent-Smith of the ONS said there was “no evidence that the bad weather hampered UK factories as both domestic … [Read more...] about UK economy had ‘very sluggish’ start to the year, ONS says