The British government was right to describe the recent bout of market volatility in the United Kingdom as having been fuelled principally by “global factors” – in particular, a sharp rise in US bond yields.

It was also right in touting how well UK markets have coped with the turmoil. But no one should downplay the additional challenges the UK economy will confront in the months ahead, the structural weaknesses that are compounding its vulnerability, or the policy action that is urgently needed.

Project Syndicate