Part 2/9:
The economic landscape over the past few years has been marred by overly optimistic assessments from central bankers and economists who believed that 2021 and 2022 constituted a genuine recovery. As we now know, these views were built on shaky foundations, leading to expectations that the slowdown of 2023 into 2024 would merely be a gentle transition. However, instead of a soft landing, the situation has proven bumpier, particularly in the UK.
Despite early signs of recovery last year, the Bank of England's cautious approach to interest rate cuts began to unravel as economic indicators turned unfavorable. The emergence of significant downward trends in GDP growth, business confidence, and consumer sentiment forced the Bank to reassess its position.