UK at risk of Japan-style deflation - papers

Laura Miller
clock

Britain is at risk of sliding into a Japan-style period of deflation, according to a Bank of England policymaker.

He also warns the UK may be even worse-equipped than Japan to escape such a scenario. Adam Posen, a member of the Bank's Monetary Policy Committee (MPC), said Britain and the US were unlikely to face repeated recessions, the Telegraph reports. But in many ways their plight was "scarier" than Japan's, said the renowned Japan expert. In speech at the London School of Economics, he said: "The UK worryingly combines a couple of financial parallels to Japan with far less room for fiscal action to compensate for them than Japan had." He also warned the banking system's continued troub...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Inflation falls faster than predicted ahead of BoE interest rate vote

Inflation falls faster than predicted ahead of BoE interest rate vote

3.2% in November

Michael Nelson
clock 17 December 2025 • 2 min read
FCA's Rathi addresses Autumn Budget market abuse concerns

FCA's Rathi addresses Autumn Budget market abuse concerns

Pens open letter to Treasury Committee

Isabel Baxter
clock 04 December 2025 • 2 min read
More tax, less shelter: A slow-burn Budget for savers and investors

More tax, less shelter: A slow-burn Budget for savers and investors

'The Budget documents make for sobering reading for those trying to build up their wealth'

Laith Khalaf
clock 04 December 2025 • 3 min read