2% UK Growth cap is unreliable: Predictive bodies are bad
The Bank of England has said that the UK Growth cap is 2%. However the UK economy is doing well, all things considered. We discuss the latest with Shaun Richards, Not A Yes Man Economics, and listen to his views on Forward Guidance.
We have a lot of different governmental bodies claim to improve situations; however they are wrong. For example the productivity numbers are positive, but this has been released when the BoE and the OBR (Office for Budget Responsibility) have stated that productivity will never rise again. This shows that when predictive bodies give up hope on a situation, the situation changes!
It changes the narrative on decisions made. For example, the top speed of the UK economy is stated to be 2%. However looking at the productivity numbers released this morning, must be wrong. The new numbers would suggest a larger growth increase.
Shaun believes that political weighting on possible situations colour their future thinking. For example Italy are currently viewed higher in terms of growth than the UK, however the UK have far outstripped Italy. The claims that the UK is the new sick man of Europe is entirely incorrect.