The UK has made the transition to a new macroeconomic environment of higher interest rates “as difficult as possible”, with the divergence of monetary and fiscal policy one of the main drivers.
Speaking at a Treasury Committee meeting questioning economists on the impact of the recent Mini Budget, chief executive of the Resolution Foundation Torsten Bell described the "impossible situation" the Bank of England has been placed in. Treasury Committee grills BoE on bond-buying expansion "Moving to a new macroeconomic environment of higher rates was always going to be really difficult and it was always going to involve tensions," he said. "But we [the UK] are now the test case for ‘can we make it as difficult as possible to travel that transition to a higher rate interest world?...
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