Monetary Policy

Bank holds interest rates, but decision still ‘a turning point’


In the Media

Shadow Monetary Policy Committee referenced in The Telegraph

Julian Jessop quoted in The Telegraph

IEA Economics Fellow Julian Jessop has been quoted in The Daily Telegraph responding to the Bank of England’s decision to hold interest rates at 5.25 per cent.

Julian said:

“The Bank of England’s Monetary Policy Committee may have left interest rates on hold this week, but this is still a turning point.

“The Bank has at least acknowledged that inflation is on track for the 2pc target in the spring and that the risks thereafter are more balanced, so it is even less likely that rates will be raised again.

“But the consensus on the MPC is still that policy will have to remain ‘restrictive’ for a while yet, so the first cut will probably not come until May, alongside the next set of Bank forecasts.

“Hopefully, this will be a case of better late than never.”

Read the full article here.

Julian’s comment was also quoted in the Lancashire Post and North East Post.