The Office for National Statistics has published its latest report on UK economic growth (GDP) showing that it was negative at 0.3%pa in compared to the expected 0%, and just 0.1% growth in August.
The slowdown and into negative growth i.e., recession is definitely here. Some have put the larger than expected fall to the Queen’s passing and her funeral.
In the last few weeks of turmoil, it appears the Bank of England is at loggerheads with government policy. The Bank’s role is to keep markets stable and control inflation. It will increase interest rates and continue to intervene in gilt markets to stabilise government borrowing costs but also it will push the UK into recession. Kwarteng and Truss are in trouble, we suspect “heads will roll”, the Government’s approach appears to be tax cuts and spending cuts to grow our way out of recession with no plan on repaying additional borrowing. Government is trying to avoid recession. You already know that we a re against the Mini Budget and confidence plummeted has plummeted.
Strong, swift action and a U-Turn is required.