Interest rate cut unlikely for ‘a long while’
5 April 2023
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Julian Jessop quoted in The Express
IEA Economics Fellow Julian Jessop has been quoted in The Daily Express responding to call from Bank of England Monetary Policy Committee member Silvana Tenreyro to cut interest rates.
Julian said:
“Silvana Tenreyro is right to warn that the full impact of last year’s increases in interest rates have yet to be felt and that a rapid fall in inflation could open the door for cuts.
“Indeed, the markets are already speculating about when the first cut might come.
“But with inflation still way above target, and interest rates only just back at more normal levels, this seems premature. It will probably be a long while before a majority of the Monetary Policy Committee is ready to cut rates again.”
Read the full article here.
Julian said:
“Silvana Tenreyro is right to warn that the full impact of last year’s increases in interest rates have yet to be felt and that a rapid fall in inflation could open the door for cuts.
“Indeed, the markets are already speculating about when the first cut might come.
“But with inflation still way above target, and interest rates only just back at more normal levels, this seems premature. It will probably be a long while before a majority of the Monetary Policy Committee is ready to cut rates again.”
Read the full article here.
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