While the last six months have seen the most rapid tightening of Western monetary policy in decades, falling interest rates may be on the horizon.
While George Osborne imposed fiscal tightening on an economy that was growing, Jeremy Hunt’s tightening will hit an economy that is in recession.
Mortgage rates are rising and house prices are set to slump by 15 per cent – is the bubble finally bursting?
With further interest rate rises on the way, and the UK probably already in recession, financial stress is likely to mount.
Filling the gap left by Russian gas will not be easy. But the last few months suggest that this crisis could yet give us a more resilient, greener energy system.
It looks as if we are close to a turning point in terms of job opportunities and unemployment.
The latest Deloitte survey of Chief Financial Officers, released today, finds that a 12-year period of easy credit conditions is drawing to an end. CFOs are rating credit as being more costly than at any time since 2010.
In the near term, the energy crisis is likely to lead to higher carbon emissions. But longer term, gas shortages could accelerate the move away from hydrocarbons.
Without the Bank’s pledge last Wednesday to buy gilts on “whatever scale is necessary”, the sell-off could have triggered chaos.
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