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Bad news coming, but better times ahead

We’d recommend ignoring any reports on the back of next week’s data releases that the UK economy is heading in the wrong direction on inflation and activity. It may only be a few months before inflation is back below 2.0% and an economic recovery is underway. Meanwhile, Labour’s decision to jettison its £28bn green investment pledge is due to fiscal constraints caused by low GDP growth and high interest rates. The government and Labour have yet to fully acknowledge the fiscal reality.

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