Monetary Policy

Bank of England too aggressive with rate hikes

Julian Jessop quoted by The Daily Brit

IEA Economics Fellow Julian Jessop has been quoted by The Daily Brit in their piece highlighting that the Bank is ‘still looking in rear view mirror.’

The Daily Brit quoted:

“The Bank’s decision to raise rates again, albeit by just a quarter point, suggests that the MPC is still looking in the rear view mirror.

“Money and credit growth have already slowed sharply and other leading indicators of inflation have weakened, including commodity prices and evidence from business surveys.

“It would have made more sense to pause to assess the impact of the large increases in rates that have already taken place, as other central banks have done.

“The UK economy is like a frog slowly being cooked by ever higher interest rates. By raising the temperature further now, the Bank risks doing too much and, once again, only realising its mistake when it is too late.”

You can read the full article here.