Labour Market

Employment Data Unlikely to Convince Bank to Cut Interest Rates

Julian Jessop quoted in The Express

IEA Economics Fellow Julian Jessop has been quoted in The Daily Express responding to the slight uptick in unemployment to 4.4% over the three months to April 2024.

Julian said:

“The latest business surveys suggest that inflation pressures are continuing to ease and the labour market is cooling further. The Bank of England’s official interest rate , at 5.25 %, is well above what might be considered a ‘neutral’ level.

“The revival in economic activity and confidence depends on hopes falling inflation will allow the Bank to cut interest rates.

“If the MPC fails to deliver soon, a longer period of unnecessarily high interest rates could still sink the recovery.

“Unfortunately, the latest news from the labour market is unlikely to sway the Bank.” 

Read the full article in The Daily Express (12/06/2024, p.9).

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