A very interesting article in the UK Telegraph:
Everything we thought we knew about the economy was wrong
GDP revision means it is now even harder to argue that “cuts” wrecked the recovery
Its quite a long piece, but concludes with an important implication:
The other big lesson is that the Bank of England’s refusal to hike interest rates is even less defensible than before. The old policy of forward guidance, as originally introduced by Mark Carney when he was appointed, was immediately obsolete; the economy was already in recovery mode. And if we accept the new methodology – and everybody will eventually fall into line, as they always do – then it means that the economy has rebounded much more than previously thought and that there is therefore far less spare capacity remaining. Interest rates need to start going up, and fast.
H/t and thanks to Lilac in the comments, here
