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Philip Booth comments on the decision to cut bank rate

Commenting on the news that the Bank of England will cut the base interest rate to 0.25 per cent, Philip Booth, Academic and Research Director and IEA SMPC representative said: 

“Today’s decision to cut the base interest rate is both disappointing and ill-advised. The post-Brexit economic problems are down to consumer and business uncertainty and will not be solved by introducing monetary stimulus. By lowering interest rates, the Bank of England will distort the economy and potentially reduce growth.

“Instead of altering monetary policy in a whirlwind panic based largely on surveys of business intentions, we need policies to de-regulate the economy in order to provide a healthier environment for business investment that will improve productivity and living standards.”

Notes to editors:

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The minutes from the IEA SMPC’s last metting where a decision to hold the bank rate in August can be found here.
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