Bank’s interest rate vote and bond plans are little help to Reeves before budget
“Gradual” and “predictable” are the watchwords at the Bank of England.But for Rachel Reeves, preparing for a tough autumn budget, a more activist approach from Threadneedle Street could have helped.The central bank had two pieces of bad news for the chancellor on Thursday: borrowing costs would be left unchanged at the current elevated level, while the Bank would proceed with a plan to sell billions of pounds in UK government bonds.Both decisions had been widely expected in financial markets.But an alternative outcome was not outside the realms of possibility and could have helped bail out the Treasury a little before the autumn budget.
With inflation running at 3.8%, almost twice the Bank’s target, the majority of the Bank’s monetary policy committee voted to keep interest rates unchanged at 4%.Households are coming under pressure from the soaring price of food, while business leaders have said the chancellor’s £25bn increase in employer national insurance contributions (NICs) is being passed on to consumers in the form of higher prices.However, two members – the external economists Swati Dhingra and Alan Taylor – shared a concern that Britain’s economy was in weak shape and required rates to be cut by a quarter-point to 3.75%.
Doing so would have been an indictment of the strength of the economy, but could have helped Reeves to argue that Labour was not standing in the way of further reductions in mortgage costs for hard-pressed households.The second decision is more complicated to explain.For the past year the Bank has been disposing of £100bn of UK government bonds in a programme known as quantitative tightening (QT), through a process of selling bonds on its books and not replacing maturing debt.A decision was required on Thursday about what to do in the year ahead.Given increasingly febrile conditions in global financial markets, some leading economists had called for Threadneedle Street to scale back its plan drastically.
Britain’s long-term borrowing costs have hit the highest level in 27 years.Much of the rise is driven by global factors, alongside investor worries over the UK economy and the public finances.But some economists believe the Bank’s QT programme has played a contributing role.On the face of it, the Bank’s decision to scale back QT to £70bn may sound helpful for the chancellor, as slowing the pace would help to soothe fears over a flood of UK bonds being sold into a jittery market.However, to hit its £70bn runoff target, the Bank will actually need to sell more government bonds over the year ahead than it did in the past year, almost doubling its target from £13bn to £21bn.
This is because fewer bonds are set to mature over the coming year, meaning that hitting the £70bn will require more active bond sales.City investors had widely expect the Bank to scale back its QT programme to these levels.But several leading economists, including former MPC members, would have preferred a complete halt to active bond sales.Doing so could have helped Reeves, saving the Treasury more than £10bn a year by IPPR thinktank estimates.A bigger move from the Bank would, however, have sent a signal that it was concerned about conditions in markets and Britain’s elevated long-term borrowing costs.
All told, the Bank sticking to the script predicted by the City neither helps nor hinders Reeves.But it could have been different.And while the chancellor could still hope for a rate cut before her budget – just weeks beforehand at the Bank’s next policy meeting on 6 November – City investors are not holding their breath.
The Thin Duck: Heston Blumenthal’s new menu for diners on weight-loss jabs
When gazing at the bill after a Michelin-starred meal, the average diner’s first thought is not usually: “I wish I’d got less food for that.”But Heston Blumenthal has come up with a new menu catering to just that sentiment, tailored to reflect a growing demand for smaller portions, driven by weight-loss drugs.The restaurateur and TV chef says his alternative selection of tasting courses at the Fat Duck will provide the same flavour and theatre for less-hungry guests – including those taking appetite-suppressing drugs such as Wegovy and Mounjaro – but in reduced quantities.When booking at the world-famous restaurant in Bray, Berkshire, diners can choose the Mindful Experience, which offers all the same creations as the usual menu, the Journey. These include the Nitro-Poached Aperitif, a frozen cocktail puff made with liquid nitrogen, and the Crab and Passionfruit 99′, which reimagines a seaside ice-cream cone
How to turn fruit and veg odds and ends into a frozen food topping – recipe | Waste not
While most Instagram food trends prioritise spectacle over substance, the viral frozen tomato idea that I’m employing today delivers genuine culinary value, and solves a common kitchen problem into the bargain. I’m a bit late to the party, admittedly, but it’s a versatile waste-saving technique.Its origin clearly derives from either Hawaiian shaved ice or granita, that classic Italian frozen dessert made by stirring and scraping or grating a sorbet-like base into shavings, and the approach essentially applies granita principles to fresh produce, while at the same time cutting out all of the hassle: simply pop any surplus or past-its-best fruit or vegetables in the freezer until they’re rock solid, then grate!The freezer is one of the best tools we have for saving waste, so if in doubt, freeze! I especially love the simplicity of this incredibly versatile dish, which can help save on waste by making use of various odds and ends or of wonky fruit and veg at the back of the crisper drawer by simply freezing it for later, then upcycling it into a really special starter.Burrata is the perfect vehicle for the subtlety of this shaved ice. It’s made by stretching a ball of mozzarella into a delicate pouch, and filling it with stracciatella (essentially, strands of mozzarella mixed with cream), and so creating one of the most delicious cheeses known to humankind
Wanted: bakes to make use of a glut of homemade jam | Kitchen aide
I have a lot of jam made with all kinds of berries – are there any bakes that would use some of it up? Anne-Lies, Gouda, the Netherlands“Jam is at the heart of many great British puddings and cakes, so there are never too many jars in my house!” says Emily Cuddeford, co-founder of Edinburgh’s Twelve Triangles bakery. Her first thought, though, would be to tip a jar of the sweet stuff into a buttered ceramic baking dish and top it with sponge: “Make a classic, equal-parts mix scaled to your dish by creaming, say, 180g butter and 180g sugar, slowly beating in an egg and a dash of vanilla or lemon zest, and finishing with 180g self-raising flour.” Spoon that on top of the jam and bake at 190C (170C fan)/375F/gas 5 until the sponge “bounces back” and a skewer comes out clean. Serve warm with cream or custard, and job’s a good ’un.You’ll also want jam to fill or top cakes
Tell us about the worst meal you have cooked
From an overambitious birthday cake to an adventurous would-be feast that ended up in the dustbin, we would like to hear about the worst meal you’ve ever cooked.We will feature a selection in an article of humorous (and non-lethal) anecdotes of culinary disaster for G2.You can tell us about the worst meal you've cooked by filling in the form below.Please include as much detail as possible.Please note, the maximum file size is 5
Thomasina Miers’ recipes for cod with courgettes, green olives and lemon, and a blackberry and almond slice
There is something so simple but so delicious about a parcel of fish. Like unwrapping an edible present, the smell hits you before anything else, which in this case is fennel, thyme and lemon. It is a delicate way to cook fish, so the sauce needs to have some character, and basil, olives and lemon with a slick of olive oil make a beautiful, late-summer seasoning. Round off the feast with a blackberry and crisp almond pastry slice that tastes all the better if you forage your own fruit.The sharp acidity of the lemon and olive herb salsa is stunning with the gently baked fish
Rukmini Iyer’s quick and easy recipe for bibimbap with miso-peanut sauce | Quick & easy
I love bibimbap, the Korean rice bowls – they’re a great way to use up bits and pieces in the fridge; arrange them beautifully on a bowl of rice and top with an egg and Korean chilli sauce. I don’t always have gochujang at home, so came up with this addictive miso-peanut chilli sauce instead. Roast the vegetables in some sesame oil in a tray, pop the rice in the microwave, boil or fry an egg, and that’s dinner sorted.Any leftovers are wonderful the next day – just heat through until piping hot.Prep 15 min Cook 30 min Serves 41 aubergine, trimmed and cut into 1
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