It is different over there, of course. No fuel crisis, as they grow their own. Most of those with mortgages fix their rates for the whole term, for better or worse, so the Joe on the Street isn’t hit so hard. And they only have 3.6% unemployed, with lots of vacancies. So in theory, more reason to think that interest rates might bring down inflation and not cause a recession. Their stockmarkets seem to think so as they’ve gone up, which should be good news for our investors, most of whom have maybe a third of their funds in US shares. The truth is, however, that most economic policy is little more than a finger in the air and hope for the best. So who knows?
“UK slips into recession as economy contracts 0.1% in December”
This week’s big economic and bad election news is that we are, or certainly have been, officially in a recession. You may not have thought you were, or you may have thought you have been for some time, as we and its effects are all different.