In the first half of 1998 there were conflicting signals regarding the UK economy, indicating on the one hand continuing consumer spending and on the other a slowing of industrial production and trade. In June interest rates were raised by a further 0.25 per cent as inflation exceeded the target rate and labour market data showed demand rising for a wide variety of workers, increasing wage inflation, even though in the same month the OECE appraisal warned that "further restraint at this stage would risk tipping the economy into recession".
展开▼
