Monetary Policy

December inflation jump does not rule out rate cut

Julian Jessop quoted in The Express

IEA Economics Fellow Julian Jessop has been quoted in The Daily Express commenting on the unexpected increase in the rate of inflation in December 2023, arguing that a cut in interest rates is still on the agenda for 2024.

Julian said:

“The tick-up in UK inflation to 4% in December will probably delay the first rate cut…but one small miss in one month’s data does not change the big picture.

“Inflation is still likely to fall to the 2% target in April and the markets will continue to price in large rate cuts later in the year.”

Read the full article in The Daily Express (18/01/2024, p.9)