Weekend Edition: Less autonomous central banks and the return of inflation

Friday 12th September 2025Please note this communication is not a research report and has not been prepared by NAB Research analysts. Read the full disclaimer here.Maybe it’s not just the Fed that’s having its independence challenged. This week independent economist Paul Mortimer-Lee wonders whether the Bank of England is now more focused on preventing the economy from tanking that it is concerned about inflation. He provides a pessimistic outlook for the UK economy, which he says is suffering from successive high spending governments. He says it needs an IMF bailout – it doesn’t need the cash, but it needs a dose of the hard medicine that the IMF doles out. Assuming that doesn’t happen, then the Bank of England will follow in the footsteps of a less independent Fed, where rates are cut to boost growth, with less concern about the return of inflation. The upshot, he reckons, is much lower rates and inflation bouncing back. Hosted on Acast. See acast.com/privacy for more information.