The British economy [August 1987]

Ashcroft, Brian and Boyle, Stephen and Draper, Paul and Harrigan, Frank and Heeley, John and Jenkins, Iain and Lockyer, Cliff and Love, Jim H and McGregor, Peter and McNicolI, Iain and Perman, Roger and Simpson, David and Stevens, Jim and Walker, Jim (1987) The British economy [August 1987]. Quarterly Economic Commentary, 13 (1). pp. 7-14. ISSN 2046-5378

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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.