Comments from BOE’s Blanchflower are hitting the wires. Standard fare from Mr Blanchflower so far. Doesn’t make happy reading, and not supportive for cable which has slipped to 1.4560 at writing.
The official sees big rises in UK unemployment still to come and urges the need for substantial short-term fiscal stimulus focused on jobs. Mr Blanchflower warns that they’ll be a huge June rise in unemployment due to school, university leavers and ofcourse he’s right.
His urgings for further government spending come at a time when many think the government should be reining back their spending/borrowing. Interesting dilema.
Pointing to the BOE’s February Inflation Report forecast showing a sharp recovery at the end of this year, Blanchflower warned that “there are plausible arguements to say this will not happen.” And ofcourse he’s most likely going to be right here as well.
