
Professor of Economics, Imperial College Business School. Past external member, @BankofEngland Monetary Policy Committee. Views own, RTs not endorsements.
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ALT Hero graphic reading 'Rising energy prices and interest rates drive higher government borrowing Energy prices have risen sharply this year, pushing up inflation, lowering real incomes, and reducing GDP growth next year. Higher inflation and interest rates drive up the forecast for government borrowing. Budget decisions further increase borrowing in the near term and reduce it in the medium term. As a result, borrowing is forecast to fall to around 2% of GDP in the medium term, but at a slower near-term pace than previous plans. This would stabilise debt though at an elevated level. The fiscal mandate is met with a reduced margin which is small relative to risks around the forecast.'

























