A big increase in public investment in the Budget on 30th October would push up demand before any rise in supply is felt. That could mean over the next year or two inflation is a bit higher than otherwise and interest rates don't fall as far. But that may be a price worth paying if more investment improves the economy's long-term growth prospects.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.