{"id":2064,"date":"2023-05-27T06:09:13","date_gmt":"2023-05-27T06:09:13","guid":{"rendered":"https:\/\/latestnews.top\/2023\/05\/27\/maggie-pagano-bring-me-sunshine-rishi\/"},"modified":"2023-05-27T06:09:13","modified_gmt":"2023-05-27T06:09:13","slug":"maggie-pagano-bring-me-sunshine-rishi","status":"publish","type":"post","link":"https:\/\/latestnews.top\/maggie-pagano-bring-me-sunshine-rishi\/","title":{"rendered":"MAGGIE PAGANO: Bring me sunshine, Rishi"},"content":{"rendered":"
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Top economist Mohamed El-Erian is spot on with his warning that the Bank of England might push us into recession if the Government relies solely on raising interest rates to curb inflation.<\/p>\n
More pertinently, the Allianz chief economist added that while the Bank has no choice but to lift interest rates, the only way to avoid a recession is to increase productivity, ease supply chains and improve the labour market.<\/p>\n
In other words, El-Erian says it’s only by a multi-pronged attack that inflation can be brought down. By itself, interest rate rises are too blunt a cudgel.<\/p>\n
Indeed, the reason why inflation is so much higher here in the UK, particularly for food, than elsewhere is because of long-term structural issues made worse by terrible productivity levels and job shortages.<\/p>\n
Yet there is little evidence that either politicians or policymakers are doing anything drastic enough to solve these problems.<\/p>\n