Coffee House Shots7 Elo 2025

Has the Bank of England forgotten what its job is?

Some excitement on Threadneedle Street today after the Bank of England cut interest rates to 4 per cent. The Bank’s Monetary Policy Committee (MPC) has just voted five to four – after a revote – for what is the third cut this year. This takes interest rates back down to levels not seen since the beginning of 2023. Concerns about an increasingly slack labour market seem to have driven the MPC’s decision.

This sounds like good news – and Starmer will welcome it as such – but the Bank’s apparent comfort with loosening policy in this context is baffling says Michael Simmons. Its own forecasts show inflation climbing back to 4 per cent by September – double the official target. If they’re wrong, and inflation slips the leash again, it won’t be brought back under control easily. This also coincides with yesterday’s news that the National Institute of Economic and Social Research (NIESR) forecast that Rachel Reeves must find £50 billion of revenue or cuts if she is to return to the £9.9 billion of fiscal headroom she left herself in the spring. Are there any rays of light escaping from the black hole as we head towards autumn’s Budget, or is it all gloom?

Also on the podcast today: Trump’s tariffs have come into effect across the world. He declared on Truth Social that ‘Billions of Dollars have started flowing into the US’… but is that true? And what’s been the reaction in the US?

Oscar Edmondson speaks to Michael Simmons and Kate Andrews.

Produced by Oscar Edmondson and Patrick Gibbons.

Become a Spectator subscriber today to access this podcast without adverts. Go to spectator.co.uk/adfree to find out more.

For more Spectator podcasts, go to spectator.co.uk/podcasts.

Hosted on Acast. See acast.com/privacy for more information.

Tämä jakso on lisätty Podme-palveluun avoimen RSS-syötteen kautta eikä se ole Podmen omaa tuotantoa. Siksi jakso saattaa sisältää mainontaa.

Jaksot(3332)

Burnham's new cabinet – who's in & who's out?

As Andy Burnham unveils his first Cabinet, join Tim Shipman and James Heale for a special live edition of Coffee House. Who’s in, who’s out? What do the appointments reveal about Burnham’s priorities,...

20 Heinä 0s

'Burnham will make enemies' – why MPs must be whipped | Simon Hart

Andy Burnham has promised to turn the whips’ office into an ‘HR department’ – but the former chief whip Simon Hart warns that the approach is ‘naive’ and could leave the new prime minister unable to c...

17 Heinä 17min

Happy Coronation Day!

Andy Burnham will today be crowned Labour leader, before entering Downing Street on Monday. His first speech is expected to argue that Labour has lost touch with the working-class communities it was f...

17 Heinä 13min

Reeves out, Shabana in?

Rachel Reeves has delivered what is likely to be her valedictory Mansion House speech, defending her record on growth, borrowing and the public finances. But with businesses counting the cost of highe...

16 Heinä 14min

Farewell, Sir Keir Starmer

Keir Starmer has delivered his final PMQs. It was a more cordial occasion compared to most weeks, with Kemi Badenoch exchanging jokes with the outgoing Prime Minister over their previous clashes amid ...

15 Heinä 15min

Kemi wages war on the 'Tory wets'

Kemi Badenoch has declared war on the Tory wets, removing the whip from Gavin Barwell after Theresa May’s former chief of staff criticised her leadership and opposed the party’s positions on net zero ...

14 Heinä 15min

Is Ann Widdecombe’s murder being politicised?

The murder of Ann Widdecombe has sent shockwaves through Westminster and reignited the debate over politicians’ security. But with questions still unanswered about the motive for the attack, Reform’s ...

13 Heinä 20min

How we plan to beat Reform | Kevin Hollinrake, Conservative chairman

The Tories will not stand a candidate against Nigel Farage in the Clacton by-election – and on today’s podcast Conservative party chairman Kevin Hollinrake explains why.Hollinrake also reveals what is...

10 Heinä 14min