Monetary Policy

Bank of England behind the curve once again


In the Media

Shadow Monetary Policy Committee featured in The Herald

In the Media

IEA Research reference in The Telegraph

Julian Jessop quoted in The Daily Express

IEA Economics Fellow Julian Jessop has been quoted in The Daily Express responding to news that inflation has declined to a lower-than-expected rate of 3.9 per cent in November and warning that the Bank of England risks overkill by keeping interests as high as 5.25 per cent.

Julian said:

After being too slow to raise interest rates in 2021, when inflation was soaring, the Monetary Policy Committee now looks set to leave rates higher for longer as inflation plummets. Last month, the Bank was forecasting inflation would still be 4.4 per cent in the first quarter of 2024 and not return to the official target of two per cent until the end of 2025.

“We have now learned that it has already fallen to 3.9 per cent in November. What’s more, almost every piece of new evidence suggests that inflation will continue to fall sharply in the New Year, just as it has in the US and most of the rest of Europe.”

Read the full article on page eight of The Daily Express (21/12/2023).