Bank of England stuck looking backwards
17 August 2023
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Economics
In the Media
Julian Jessop featured in the Telegraph
17 August 2023
Housing and Planning
Julian Jessop featured in The Guardian
IEA Economics Fellow Julian Jessop has been featured in a Guardian piece speculating yet another Bank of England rate rise despite deteriorating economic conditions.
The Guardian quoted:
“The inflation data shows a welcome fall in the headline rate, but core inflation that excludes food and energy remains stuck at 6.9%. The headline rate is also likely to tick up in August, reflecting higher fuel and alcohol prices, some unhelpful base effects, and the continued strength of the labour market.
“There are still plenty of reasons to expect inflation to tumble over the rest of the year, notably the sharp slowdown in money and credit growth. Rising unemployment and falling vacancies suggest that wage pressures will soon peak too.
“Unfortunately, the Bank of England continues to look backwards at the headline data over the last month or two, rather than pause to assess the impact of the substantial tightening in policy that is already in place. This makes another unnecessary interest rate increase more likely.”
You can read the full article here. Julian’s response to July’s inflation figures was also featured in ExecReview, The Lancashire Times, The Yorkshire Times, MSN, Interactive Investor, and Landlord Today.
The Guardian quoted:
“The inflation data shows a welcome fall in the headline rate, but core inflation that excludes food and energy remains stuck at 6.9%. The headline rate is also likely to tick up in August, reflecting higher fuel and alcohol prices, some unhelpful base effects, and the continued strength of the labour market.
“There are still plenty of reasons to expect inflation to tumble over the rest of the year, notably the sharp slowdown in money and credit growth. Rising unemployment and falling vacancies suggest that wage pressures will soon peak too.
“Unfortunately, the Bank of England continues to look backwards at the headline data over the last month or two, rather than pause to assess the impact of the substantial tightening in policy that is already in place. This makes another unnecessary interest rate increase more likely.”
You can read the full article here. Julian’s response to July’s inflation figures was also featured in ExecReview, The Lancashire Times, The Yorkshire Times, MSN, Interactive Investor, and Landlord Today.
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