Bank should hit the brakes on interest rate rises
17 August 2023
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In the Media
In the Media
Phillip Booth writes for The Telegraph
17 August 2023
Housing and Planning
Julian Jessop featured in the Telegraph
IEA Economics Fellow Julian Jessop has been featured in a Telegraph piece discussing why the Bank of England should refrain from another round of kill-or-cure interest hikes.
The Telegraph quoted:
“The inflation data shows a welcome fall in the headline rate, but core inflation that excludes food and energy remains stuck at 6.9pc. 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 comment was also mentioned by the Daily Express, iNews, This is Money and Mail+.
The Telegraph quoted:
“The inflation data shows a welcome fall in the headline rate, but core inflation that excludes food and energy remains stuck at 6.9pc. 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 comment was also mentioned by the Daily Express, iNews, This is Money and Mail+.
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