The prospects for output growth continue to be favourable. However, since the publication of the May Commentary concern has increased about the inflationary consequences of overheating and the prospects for the balance of payments during the remainder of the year. The government's response in raising base rates can probably be justified given the recent slight downward movement of sterling, but future policy action to moderate the rate of expansion should focus on the public sector borrowing requirement.
|Number of pages||8|
|Journal||Quarterly Economic Commentary|
|Publication status||Published - 1 Aug 1987|
- Scottish economy
- British economic conditions