Interest Rate Cut Should be the First of Many
5 August 2024
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Government and Institutions
In the Media
Christopher Snowdon writes for City AM
5 August 2024
Economic Theory
Julian Jessop quoted in The Express
IEA Economics Fellow Julian Jessop has been quoted in The Daily Express reacting to the Monetary Policy Committee’s decision to lower interest rates to 5%, stating that whilst this is a positive move the goal should be to lower rates to 4% by early next year.
Julian said:
“The Monetary Policy Committee’s decision to cut interest rates to five percent this week was finely balanced but surely correct. The aim should now be to return rates to a neutral level of around four percent by early next year.
“The Bank’s own economic forecasts point the way. Inflation is expected to pick up temporarily in the second half of this year, but then fall back to 1.7 percent in two years and to 1.5 percent in three years, even based on market expectations of further rate cuts.
“The economy has been a little stronger than expected, but this is partly based on hopes that falling inflation will be followed by falling rates. The Bank needed to deliver in order to sustain the recovery.”
You can read the full piece here.
Julian was also quoted in MSN, The Birmingham Mail, The Lancashire Times, Proactive Investors, The Daily Telegraph, and The Daily Mail.
Julian said:
“The Monetary Policy Committee’s decision to cut interest rates to five percent this week was finely balanced but surely correct. The aim should now be to return rates to a neutral level of around four percent by early next year.
“The Bank’s own economic forecasts point the way. Inflation is expected to pick up temporarily in the second half of this year, but then fall back to 1.7 percent in two years and to 1.5 percent in three years, even based on market expectations of further rate cuts.
“The economy has been a little stronger than expected, but this is partly based on hopes that falling inflation will be followed by falling rates. The Bank needed to deliver in order to sustain the recovery.”
You can read the full piece here.
Julian was also quoted in MSN, The Birmingham Mail, The Lancashire Times, Proactive Investors, The Daily Telegraph, and The Daily Mail.
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