UK Interest Rates Are Heading Below 3% — And the New Prime Minister Can't Stop It

Neil Woodford says UK interest rates are heading below 3% next year, and the new Prime Minister has almost nothing to do with it. The consensus says Britain has a structural growth problem. The data says something different: the UK economy is waiting on one number.

In this episode, we explain who actually buys Britain. Households account for roughly 60p of every pound of UK GDP, and since the pandemic, they have been saving at nearly double the American rate. British banks now hold over £500 billion more in deposits than they have lent out. That savings mountain, not Westminster rhetoric, is what decides whether Britain grows.

Neil explains why the Bank of England's sticky inflation fears have been wrong all year, why the household savings ratio is the single most important number in the UK economy, and where inflation and interest rates land over the next 12 months. Plus: the sectors that look mispriced if he's right, and the data releases that would confirm the view or kill it.