RLAM's Kernohan says expenditure needs to slow to reduce inflation

Ian Kernohan, economist at Royal London Asset Management, has rebuffed arguments the UK government should boost public spending or cut taxes in the face of an economic slowdown.

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Mr Kernohan maintained expenditure needed to slow to reduce inflation and any fiscal stimulus from the Treasury would provoke the Bank of England to raise interest rates.

"In many ways, it's a good thing the government's cupboard is bare, since it reduces the temptation to meddle in 1970s-style short-term demand management," he said.

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