IEA Economics Fellow Julian Jessop has been quoted in The Times warning that it is “far too soon to sound the all clear” on inflation. The article discusses the increased market expectations of higher interest rates in response to this week’s inflation statistics.

While the 0.2% decline in the headline rate of inflation from July to August defied expectations of a further increase, Julian still urged the Bank of England to take a more aggressive approach when its Monetary Policy Committee meets on 22nd September. He was quoted “The Bank has more work to do to get inflation back down to the 2 per cent target. The Bank’s monetary policy committee therefore needs to be bolder to restore credibility. Raising rates by 75 basis points at the rescheduled meeting next week, rather than the expected 50 basis points, would still leave rates at the historically low level of 2.5 per cent”.

The full article can be read here.